Project: Project Rescue and Recovery
Sector: Waste to Energy and Renewables
The anaerobic digestion plant, located in Ayrshire, was Scotland’s largest combined organic waste treatment and energy generating facility, and was developed by SSE on land leased from William Tracey Ltd.
The facility has the capacity to process up to 75,000 tonnes a year of residual waste and produce up to 2.5 megawatts (MW) of renewable electricity, contributing to both Scotland’s renewable energy targets as well as landfill diversion targets.
RLF was appointed mid-way through this project, replacing the incumbent Cost Consultant. This being because of significant increases to project costs and a lack of compliance with contract administration procedures.
The client required rapid project recovery support to protect the business case, which was under threat due to level of project cost increases, and to ensure that the works were delivered on site as early as possible.
RLF added significant value to this project due to our pragmatic approach to project management, cost management and contract administration.
- Accurate Cost and Risk Assessment
Following an audit of the existing project, and the decision to appoint RLF to deliver the remainder of the project, we immediately undertook a series of contractor cost reviews to establish the full extent of financial and construction risks remaining on the project.
We prepared and utilised a fully populated risk register to inform a revised anticipated final cost for the project which was presented to the client to help them secure additional funding.
Following the successful funding application, and a formal instruction to proceed, the final account for the project works was agreed in accordance with the revised RLF forecast and anticipated final cost, prepared some twelve months earlier.
Our appointment was made at a stage when commercial recovery measures were required. The true added value of our services was our ability to calmly, sensibly and quickly re-evaluate the project costs and risks on the project at a time when most of the project team members were, to a degree, entrenched, due to ongoing commercial disputes.
Our rapid audit and re-evaluation of the costs resulted in a significant improvement to contract administration and cost forecasting. We gave the client greater confidence on the likely outcome of the project.
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