Demo of CorGuv\'s capabilities

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 Second level
 Third level
Contract
Compliance
– Fourth level
» Fifth level
A Presentation by

2. 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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3. Background & Skills
 CorGuv is 51/2 years formed after a successful SOX
implentation.
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 Background & Skills:
 Second level
 Contract level
 Third Compliance/Management
 Forensic Investigations.
– Fourth level
» Fifth level
 Business Process & Risk Analysis.
 Project Management & Governance.
 Internal Control - System Design & Implementation.
 Joint Venture Auditing
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4. Customers
 Apache North Sea.
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 Second level  BG Group.
 Third level
 Centrica Energy.
– Fourth level
 level
» Fifth Premier Oil.
 Marathon Oil.
 Total E&P UK.
 Venture Petroleum
 BP Exploration.
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5. The Scope of Contract Compliance Services
 Monthly Contract Checks
Checks on Scope, Rates, Invoices & Processes, Man
hours, Overtime, Burdens, Equipment & Running Charges
FULL SCOPE OF CorGuv’s SERVICES
Rates, Variation Orders, Amendments.
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 Second level
 Forensic Investigations
 Third ‘Beyond the Paper’
 Investigative approach – level
– Fourth level
 Third Party pricing checks.
Feedback on ‘Actual’
 Cross-Referencing different» Fifth level
data-bases. Performance
 Process Reviews.
 Root Cause Analysis.
 Review & Improvements to:
 Procurement Processes.
 New Contracts.
 Award.
Long Term Benefits from a Holistic Approach5
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6. Independent Contract Compliance Review
Initial Health Check
 3-5 days internal audit (normal rates).
 Initial report.
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Proposal to proceed with commercial styles
 Agreement  Secondproceed.
on how to level
 Third level
Forensic Audit
– Fourth level
 Audit on contractor’s books.
 » Fifth level
Monetary and procedural.
 Findings and negotiating strategy.
 Root Cause Analysis for future contract improvements.
Negotiations on Findings
 Agree Negotiating Strategy.
 Negotiate Recoveries.
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7. Value Through Improvements
Future Leverage on:
1. Risk Reduction.
2. Reduction of Overcharging.
10% 3. Reduction of Fraud
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Master Analysis applied exposure.
4. Cost Effective Contracts.
1.Existing Contract Conditions.
 Second level Tenders.
2. New
5. Contractual Relationships.
Future Savings
3.Invoicing Process.
 Third level
4.New Contracts.
5% Strategy
– Fourth level
Scoping
Recoveries
» Fifth level
Tender
Monetary
Improvements Evaluation
Findings
Award
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8. Example
 5 year contract, £7,000,000 p.a
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 Time taken – 25 days. styles
 Second level
 Actual Cash recovered £600,000:
 Third level £24,000 per day
– Fourth level
 Total Reward, £95,000: £3,800 per day.
» Fifth level
 Time Charged client-risk - £16,000: £640 per day.
 Contract Strategy Changes - £4,000,000: £160,000 per day
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9. 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 Improvements.
Sustainable level
 Third level
 Investigative Techniques – our proprietary process ensures
we find issues.
– Fourth level
 Focus – Commercial/Ethical, dedication to the task, can be an
» Fifth level
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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10. Case Studies (CorGuv)
 Average recovery could be 5-10 times the cost.
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NIC overcharges of £3.0m.
 Second level
 Identification of excess profits of £1.5m due to unethical third party
invoicing. Third level

– Cost level
 £700 m Project –Fourth 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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11. 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.
 Improved contract management.
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 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.
» Fifth level
 Relationships
 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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12. 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.
– Fourth level
 Contract Strategy.
 Setting up Compliance Regimes.
» Fifth level
 Health Check is a low cost entry point.
The Benefits . . . . . . . . .
We Recover for our clients what is rightfully 12
theirs. 12

13. Summary
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 Second level
 Third level Cost Recoveries
– Fourth level
Historic Errors &
» Fifth level
Overcharging.
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14. Summary
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 Second level
Long-Term Improvements
 Third level
– Fourth level
Contract Management and
» Fifth level
Strategy.
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15. Summary
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 Second level
Experienced staff
 Third level
– Fourth level
Integrity, Curiosity, Maturity
» Fifth level
.
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16. Summary
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 Second level
 Third level Independence
– Fourth level
Free from operational
» Fifth level
pressures.
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17. Summary
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 Second level
Deterrence of Fraud
 Third level
– Fourth level
Fear of being detected.
» Fifth level
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18. 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/inputto edit Master text styles client . Without doubt CorGuv
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has delivered value on each assignment. Cash recoveries alone have
 Second level
been substantial although that was not the primary objective in
every assignment.level
 Third CorGuv have also assisted us to further clarify &
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 a minimum whilst maximising benefits. In
» 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
 Second level
 Third level
the Pillars
– Fourth level
»of Business
Fifth level
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20. Early Intervention
Potential for Loss/Gain Recoveries: Higher
costs and lower leverage
Future Savings
limit the value.
 ClickSavings: Lower costs text styles
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Recoveries
and higher leverage
 Second level
maximise the value.
 Third level
– Fourth level
Cost of Correction » Fifth level
Operation
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