BAA Capital Projects

Capital Projects Programme

Overview

Work around Heathrow continues, including the construction of a new Terminal 2 building. Such major capital programmes involve large and complex supply chains using a variety of contract types. Cost control has traditionally been overseen by quantity surveying organisations.

However BAA was looking for additional professional audit support and independent assurance across some of the more complex projects.

Actions

The Orange Partnership was appointed, working closely with the newly created Head of Audit for Capital Projects.

Major achievements included the creation the infrastructure to support a programme of audits. Working collaboratively with the major contractors we carried out forensic cost verification reviews and audits of commercial processes, such as Change Management and Earned Value. During our first year we have carried out 25 audits on projects ranging from £2m to £800m.

Results

Working collaboratively with contractors, we have helped improve the overall commercial management of Capital Projects. Contractors have used our findings to improve their own commercial processes.

BAA's capital management team have used our findings to help drive continous improvement, including the establishment of an internal audit function.

In addition to cash flow issues we have identified over £6m of overcharging, which we are actively supprting BAA to recover.

For more information call +44 (0)20 8898 6447
or send your enquiry.