A petrochemicals client needed to quickly procure design packages for modifications at Its UK refinery. To save time, our client agreed to a single-source procurement approach, weakening its position to challenge design scope and cost.
GCM was engaged to lead a commercial review. Ultimately, we reduced the design contract value by over £180,000, shaving 13 weeks off the delivery programme.
Our client is a refining and energy trading company responsible for operating a prominent UK refinery.
Our client needed to act fast. In preparation for operational changes, the business was under pressure to progress critical design work. A single-source procurement route was approved to speed up the timeline – but this created commercial vulnerabilities.
The initial design tender returned at over £900,000 and required over 10,000 hours of design work, placing strain on cost, programme and quality assurance. GCM was engaged to secure better value without delaying the start of work.
We worked with our client’s project team to conduct a detailed analysis of the designer’s deliverables. Together, we identified unnecessary design scope – for example, the designer had proposed 80 bespoke pipe supports, which GCM challenged, recommending the use of standard materials.
We led a master tender analysis across three tenders by the same designer, identifying overlap and excessive early-stage costs. Next, we conducted a benchmarking exercise using comparable tenders from other designers to identify areas for cost savings within the single-source framework.
Finally, we negotiated contractual protections, including:
GCM’s intervention delivered meaningful commercial improvements. Results included:
To learn how we can support your construction business, speak to a member of our team.
