Crossrail Contract C530

Managing the commercial impact of design change

Supporting Balfour Beatty with design-package commercial management, early warnings and compensation events on the Woolwich station and portals fit-out contract.

 

Project Overview

  • Project Title
    Crossrail Contract C530
  • Client served
    Balfour Beatty
  • Role
    Contractor-side commercial support
  • Assignment
    2015 to 2017
  • Project value
    £100m
  • MJA contract value
    £700k
  • Primary category
    Contract Management
Hinkley-Point-C-Project

Managing the commercial impact of design change

As the post-award design developed on Crossrail Contract C530, differences from the tender information created cost and programme implications. The contractor needed to manage the commercial effects across its client and design-consultant interfaces.

Our role

MJA provided a commercial manager for the design package, working alongside Balfour Beatty’s technical lead and design manager. We assessed early warnings and priced and negotiated compensation events, the NEC mechanism for dealing with specified changes to time and cost.

Our work included design-consultant payment assessments, contractual time limits, periodic reporting and risk-reduction meetings. We also prepared bills of quantities and activity schedules for additional subcontract procurement arising from changes. Contract communications were managed through the project’s document and administration system. As the workload grew, MJA mentored contractor graduates to support the team’s development.

The value

Mobilisation is a substantive part of the commissioned service. It includes Alliance Contract familiarisation, agreement of the Audit Plan, review of partner finance systems, scrutiny of certification and costs to date, and interim system, earned value and statement reviews. Progress will be reviewed by the Board six months after award.

Our proposal develops this into a cross-partner commercial health check: testing the consistency of systems, data, reporting and responsibilities, and examining the strength of first- and second-line self-assurance. It also brings forward lessons on terms of reference, standardised reporting and targeted sampling, to be developed through the agreed Audit Plan.

The intended benefit is earlier identification of inconsistencies, clearer evidence requirements and fewer issues left to accumulate into a retrospective cost debate. Stronger self-assurance can support a more proportionate independent audit programme where testing demonstrates that controls are reliable. Audit coverage will remain driven by evidence and risk.

Discuss design change and contract management