Project

Name
Trawsfynydd Nuclear Power Plant
Involvement
Full Time Commercial Management Services
Subcontract Value
£3,850,000 (Labour and Plant only)
Final Account Value
£5,900,000
Overview

Relocation of the Primary Circuit Components at decommissioned Nuclear Power Plant in Snowdonia, North Wales.

IAA were employed by MB Nuclear in August 2002 to review the cost data being reported on a project that had been on site since January 2000. MBN had been reporting a cost to completion forecast of £6M.

By September 2002, IAA had established that this was a substantial understatement of the costs and a detailed forecast to completion of £10.25M was reported, with the actual costs at that time being £3.75M.

The original subcontract completion date was January 2003, however with increased specifications and additional works it was reported to the client that this date would now be August 2005.

With the overruns and additional costs identified it prompted negotiations between the client, the contractor and IAA/MBN, from which the client elected to agree a mutual termination subject to fair and reasonable settlements. In June 2003 IAA/MBN settled its final account at £5.9M, a £2.5M increase on the previously certified sum and with the actual costs at £5.6M.

This turned a potentially considerable loss into profit.