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 Second level
Contract
– Fourth
level
Compliance
 Third level
» Fifth level
A Presentation by
Strengthening the Pillars of Business
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 Second level
Aim:
 Third level
– Fourth level
» Fifth level
To inform clients of the
Contract Compliance Services
& Capabilities offered by
CorGuv.
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Background & Skills
 CorGuv is 51/2 years formed after a successful SOX
implentation.
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 Background & Skills:
 Second level
 Contract
Compliance/Management
 Third level
Fourth level
 Forensic– Investigations.
» Fifth level
 Business Process
& Risk Analysis.
 Project Management & Governance.
 Internal Control - System Design & Implementation.
 Joint Venture Auditing
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Customers
 Apache North Sea.
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 Second level
 Third level
 BG Group.
 Centrica Energy.
– Fourth level
 Premier
» Fifth
level
Oil.
 Marathon Oil.
 Total E&P UK.
 Venture Petroleum
 BP Exploration.
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The Scope of Contract Compliance Services
Checks on Scope, Rates, Invoices & Processes, Man hours,
Overtime, Burdens, Equipment & Running Charges Rates, Variation
Orders, Amendments.
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 Second level
 Forensic Investigations
 Third– level
 Investigative approach
‘Beyond the Paper’
– Fourth level
 Third Party pricing checks.
Fifth level
 Cross-Referencing different»data-bases.
Feedback on ‘Actual’
Performance
 Process Reviews.
 Root Cause Analysis.
 Review & Improvements to:
 Procurement Processes.
 New Contracts.
FULL SCOPE OF CorGuv’s SERVICES
 Monthly Contract Checks
 Award.
Long Term Benefits from a Holistic Approach5
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Independent Contract Compliance Review
Initial Health Check




3-5 days internal audit (normal rates).
Initial report.
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Proposal
proceed
withMaster
commercial
options.
Agreement on Second
how to proceed.
level
 Third level
Forensic
Audit
– Fourth level




Audit on contractor’s books.
» and
Fifthprocedural.
level
Monetary
Findings and negotiating strategy.
Root Cause Analysis for future contract improvements.
Negotiations on Findings
 Agree Negotiating Strategy.
 Negotiate Recoveries.
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Value Through Improvements
10%
Future Leverage on:
1. Risk Reduction.
2. Reduction of Overcharging.
3. Reduction of Fraud
exposure.
4. Cost Effective Contracts.
5. Contractual Relationships.
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Causetext
Analysis
applied to:
1.Existing Contract Conditions.
3.Invoicing Process.
 Third level
4.New Contracts.
5%
– Fourth level
Recoveries
Monetary
Findings
» Fifth level
Improvements
Future Savings
 Second level
2. New Tenders.
Strategy
Scoping
Tender
Evaluation
Award
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Example
 5 year contract, £7,000,000 p.a
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 Time
taken
– 25
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 Second level
 Actual Cash
recovered
£600,000:
 Third
level
– Fourth level
 Total Reward, £95,000:
» Fifth level
 Time Charged client-risk - £16,000:
£24,000 per day
£3,800 per day.
£640 per day.
 Contract Strategy Changes - £4,000,000: £160,000 per day
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Why we have Something Special to Offer
 Experience – 30+ years in Supply Chain, Contracts,
Management, QS or Audit. All our staff are selected for their
Curiousity, Persistence, Maturity, & Focus on the client-supplier
relationship.
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 Scope –Depth, Supply Chain, Root Cause Analysis, Follow-up,
 Second level
Sustainable
Improvements.
 Third level
 Investigative
Techniques – our proprietary process ensures
we find issues.
– Fourth level
» Fifth level
 Focus – Commercial/Ethical,
dedication to the task, can be an
addition to company audit programs.
 Independent – Willing to seek out reality, no conflicts of
interest, completely confidential.
 Results – our Project Management approach delivers
benefits/value in a limited time.
 Commercial Flexibility –Standard Rates, Fixed Price or
Risk/Reward as appropriate.
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Case Studies (CorGuv)
 Average recovery could be 5-10 times the cost.
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 
NICClick
overcharges
of £3.0m.
 Second level
 Identification of excess profits of £1.5m due to unethical third party
invoicing. Third level
level
 £700 m Project– –Fourth
Cost Recovered
- £40-50 m.
» Fifth level
 Checking of sub-contract costs showed 65% discount of £1.5 m not
passed on to client over 3 year period.
 Over charge on local delivery of 45% margin reduced to 5% (£1.0 m).
 Review of timesheets for engineering contract identified accounting
allocation errors resulted in over charging by £1.5m.
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Business Benefits
 Performance
 In-depth insights and feedback of your contract's real performance.
 Improved contract/procurement strategies - through feedback of actual performance.
 Improved service delivery.
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 Improved
management.
 Costs Second level
 Cost Recoveries,
if due.
 Third level
 Sustainable future cost savings – through improvement of contract strategy & drafting.
– Fourth level
 Reduction in the potential for unethical activity.
 Relationships
» Fifth level
 Improvements with JV partners.
 Improvements in client/supplier relationships – through improved transparency,
openness & trust.
 Time
 Time saved on dispute resolution.
 Time saved on invoice checking - due to improved invoice process/documentation.
 Risk/Reward deals
- that avoid on-going consultancy costs and maintains our commitment.
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Assurance that Contracts are cost effective, commercial
& Ethical.
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Summary
 Based on our Core knowledge of post-award performance
we can apply our experience at any point in the Contract
Cycle:
 Post-Award contract performance, Forensic Audits.
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 Procurement & Award Phase.
 Second level
 Contract drafting.
 Third level
 Contract Management.
– Strategy.
Fourth level
 Contract
» Fifth level Regimes.
 Setting up Compliance
 Health Check is a low cost entry point.
The Benefits . . . . . . . . .
We Recover for our clients what is rightfully 12
theirs.
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Summary
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 Second level
 Third level
Cost Recoveries
– Fourth level
Historic Errors &
Overcharging.
» Fifth level
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Summary
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 Second level
Long-Term Improvements
 Third level
– Fourth level
Contract
» Fifth levelManagement and
Strategy.
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Summary
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 Second level
Experienced staff
 Third level
– Fourth level
Integrity, Curiosity,
» Fifth level
Maturity.
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Summary
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 Second level
 Third level
Independence
– Fourth level
Free from operational
pressures.
» Fifth level
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Summary
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 Second level
Deterrence of Fraud
 Third level
– Fourth level
Fear
» Fifthof
level being detected.
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Testimonial
"CorGuv have undertaken a number of contract compliance
assignments on behalf of Apache . All of these assignments have
been performed efficiently & effectively and with minimal
effort/input
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as the client . Without doubt CorGuv
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has delivered value on each assignment. Cash recoveries alone have
 Second although
level
been substantial
that was not the primary objective in
every assignment.
CorGuv have also assisted us to further clarify &
 Third level
strengthen our contracts which has subsequently saved even greater
– Fourth level
costs in future contracts.
CorGuv have a well developed process for
keeping audit costs to
minimum
whilst maximising benefits. In
» a
Fifth
level
particular, they treat the whole process as a project, focusing on
delivering value, including supporting us right up to the point
where recovery negotiations are complete. In short CorGuv offer a
compelling blend of experience and commercial knowledge that
delivers a complete service and I have no hesitation in
recommending their services."
General Services Manager, Apache North Sea
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Strengthening
the
Pillars
– Fourth level
»of
Fifth Business
level
 Second level
 Third level
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