Securing our client's quickest ever final account agreement

Our client provides a range of specialist services to owners and operators of rail facilities and sidings in the UK. We were engaged to provide quantity surveying and commercial services for a project where our client was transitioning to complete their subcontract for a new main contractor as the previous main contractor had entered administration.

Picking up the pieces

Given the nature of our client’s appointment, the subcontract (NEC4 Option A) was prepared and executed at speed. The scope of works was, in effect, to complete the previous subcontract but due to the specialist nature of our client’s scope this was not straightforward for the parties to document.

The previous Activity Schedule was the basis of the works to be completed but this did not detail any of the variations to the previous subcontract. There were elements of work commenced under the previous subcontract where the main contractor client had not agreed any budget to complete the work. This meant there were scope gap issues which needed to be resolved and warranty issues to overcome.

The sub-subcontractors used by our subcontractor client, and involved prior to the main contractor’s termination, were willing to complete the work but were seeking re-mobilisation fees and a renegotiation of the rates. These needed to be resolved prior to entering into new agreements.

Managing the contract

The nature of the pre-contract challenges presented issues in the delivery of the contract. In a 6-month period there were a significant volume of compensation events to deal with. We managed the submission process through the main contractors document management platform, and by email due to issues with the platform, and ensured our client remained compliant with the contract conditions.

Our services covered the full range of quantity surveying and commercial management services which included the preparation of monthly CVR’s and financial forecasts, procurement of subcontractors, managing the main contractor account including contract administration and payments, managing subcontract accounts including contract administration and payments, risk and opportunity identification and control, giving commercial advice to business leaders through the monthly reporting process.

How it ended

Due to our day one final account approach, and despite the volume of change, we concluded the final account with the main contractor on the date of practical completion. This satisfied the main contractor client, gave financial certainty to our client, and delivered on their expected return; ensuring our services were closed out in good order.