MDCI Project Developers were called in to support a major developer engaged in the construction of 400,000m2 of infrastructure works. They were concerned that their team were over budget and behind schedule and needed independent experts to offer project supervision and monitoring and offer solutions to get the project back on track.
After a detailed analysis of the project, we discovered that there was a fixed price contract in place, but that it was based on incomplete and defective technical documentation. The project was being managed by a constructor with no previous infrastructure experience and supervised by a team without the right qualifications or experience to be able to undertake their duties.
Digging into the costs and invoices presented we discovered that the constructor was ignoring the terms of the fixed price contract. They were charging the developer above what was agreed, in advance of the works being done and at rates that had not been preapproved by the client. Unfortunately, the technical team who is supposed to oversee and authorise the works was cooperating with the constructor and so no proper oversight was being done and the client was unaware of these extra charges.
The developer was right to be concerned about the project, it was over budget and behind schedule and thankfully we were able to make a number of recommendations to address this and bring the project back on track.
However, this was not the end of this project’s issues and once again charges were being made that were not in line with the contract.