E&M Systems CKS Int. Airport


Provision of Commercial Management & Dispute Resolution Services. The Taiwan Taoyuan International Airport Access MRT System, commonly known as the Taoyuan International Airport MRT, is a rapid transit system planned to connect Taipei and Taiwan Taoyuan International Airport, before linking up with the Taoyuan MRT to THSR Taoyuan Station and onwards to Zhongli. Construction began in 2006 and the system is scheduled to begin service in June 2013 Construction is being overseen by the Bureau of High Speed Rail of the Communications, which oversees the construction of the Taiwan High Speed Rail as well as regional rapid transit systems (except the Taipei Metro and Kaohsiung MRT) in Taiwan.

The design of core E&M systems (including rolling stock, power supply, signaling, communications, depot equipment, platform screen doors, etc.) and the design and construction of two depots (Chingpu and Lujhu) were awarded as part of a contract worth NT$25.5 billion. Hitachi, in cooperation with Marubeni Corporation and Kawasaki Heavy Industries, won the bid for the E&M systems and signed the contract on January 12, 2006.

IAA was appointed by Invensys Rail Ltd (formerly Westinghouse Rail) to provide commercial support from UK to augment the commercial management team in Taiwan to investigate the scope, identify variations and provide contractual and commercial advice in respect of their contract with Murubeni.

Subcontract Value: £40,000,000.00


MSV Regalia Semi-Submersible


Full Time Commercial Management Services. MSV Regalia Semi-Submersible “Flotel” Refurbishment. This project was the refurbishment and overhaul of an accommodation vessel for the Oil & Gas Off-shore Industry.

Appointed by Babcock Design Services, Marine Division – Integrated Technology, part of the Babcock International Group as the commercial wing of the project management team seconded to support the refurbishment of the MSV Regalia, a semi submersible accommodation vessel on behalf of Prosafe Offshore.

The commercial services on behalf of the vessel owner included the initial tendering, contract drafting, negotiations and appointment of the shipyard. This progressed to include both Rotterdam and UK based teams dealing with all elements of the commercial and project controls services, through the implementation of commercial process for dealing with measurement and changes for the yard works and those of key suppliers; negotiations of yard and third parties accounts to Final account stages; and internal financial reporting to the Clients Steering Committee from budget to Project Close Out.

IAA also provided commercial services direct to Babcock to oversee the reporting and invoicing of the design services element also provided by Babcock to the Client Prosafe Offshore.

Final Account Value: £140M


Stirling, Alloa, Kincardine Rail (SAK)


Full Time Commercial Management Services. The project was a joint venture between Babcock Rail and Nuttall’s for the Design, supply and installation of a new line of railway approx 14 miles from Stirling to Kincardine. Babcock’s package was for the design and installation of the railway and Nuttall’s for the civil engineering works.

The contract was NEC target cost with a pain/gain share.

IAA were appointed in July 2007 following a due diligence as instructed by the Babcock International Group (BIG) board some 12 months from commencement of the project and required to carry out a full interrogation of the contract costs to that date, inclusive of all internal, supplier and subcontractor costs. IAA established that the expected costs were not covered in the cost predictions to the client.

Additionally as a result of the joint venture contract conditions the prediction of the expected final costs and value became identified as a priority.

IAA overhauled the project variation submissions and predictions and implemented commercial and contractual procedures with respect to the overall account and subsequently then handed back the day to day administration to BAR own internal staff some 12 months later to allow finalisation of the account.

Sub-contractors accounts required detailed interrogation as monies had been previously certified to subcontractors without any correlation to target and certified amounts the correct procedures were put in place and final accounts established.

Subcontract Value: £30.0m Babcock Rail package

Final Account Value: £60.0m +


Shield Road to Gourock


Full Time Commercial Management Services. The Shields to Gourock Project (OHL renewal and maintenance) was a 26 mile section of track that was being both upgraded and refurbished to current standards with the normal train operating timetable being maintained to alleviate disruption to the operators.

The contract consisted of two sections those being the renewal of the overhead lines and refurbishment works to overhead gantry and support structures, etc.

The contract was based on M/F 1 (Rev 3 1988) as amended by Network Rail Clause 56 amendments. Sectional completion applies to the Renewal and Refurbishment Works.

IAA was appointed in March 2008 some 36 months from the commencement of a 2 year contract.

IAA were required to carry out a full interrogation of the contract costs and value to that date inclusive of all internal , supplier and sub-contractor costs etc. and it was established that not all entitlements had been recovered through the conditions of contract.

IAA overhauled the cost report (introduced realistic forecasts for both expected final value and expenditure for the project), applied for extensions of time, re-visited variations and updated a previously submitted final account presentation.

IAA developed the final account strategy for resolution of the project which was implemented by Babcock Rail.

Subcontract Value: £10.15m

Final Account Value: £14.5m


South Wales Expansion Project


(SWEP) Felindre Gas. Full Time Commercial Management Services. New build project for the civil and building works for a 30MW Gas Compressor Station, Felindre South Wales, contracted under NEC Option C Target Cost with Activity Schedule, heavily amended.

Following the departure of the previous commercial team, IAA was appointed by Morgan EST to provide the Managing surveyor and commercial support, to oversee the full commercial management of the project. This included the costing, identifying and evaluation of compensation events, Cost forecasts internal and external, commercial and contractual correspondence to sub-contractors and client’s representatives; prepare final account and subcontractor final accounts.

IAA’s primary role was to commercially review the projects immediate situation, identify all contract scope costs and compensation events and provide a clear strategy for progressing the project commercially and maximising the Target Price. Following satisfactory completion of the primary objective the role developed into recovering the project on both a commercial and financial front.

Due to the extent of the previous commercial problems and the heavily amended contract terms and conditions; IAA’s involvement not only included the traditional submission of a final account, we assisted in the drafting of referral notices for Adjudications for submission including discussions with our clients’ legal representatives.

Subcontract Value: £12.50m

Final Account Value: £19.1m Overview


Langeled Receiving Facilities (LRF)


Full Time Commercial Management Services. IAA were employed by AMEC Civils (now Morgan Sindall) to manage and price contract variation for the construction of the civils and buildings works at the Langeled Receiving Facility, part of the Ormen Lange Langeled Development, to import gas from Nyhamna Norway to Easington, on the east coast of England from a subsea pipeline. The works were carried out under bespoke contract conditions.

Our primary role was to manage and price contract variation accounting for over half the final account value. This was achieved by setting up new on-site contract administration procedures and implementation of change control procedures and processes, ensuring compliance with contract commercial obligations and to ensure maximum commercial recovery.

To facilitate this a full time commercial presence was maintained on site to identify variations, prepare pricing strategies, internal cost reporting and supervise a team of 4 change control surveyors.

Subcontract Value: £13.00m

Final Account Value: £31.00m


Upgrade Cement Plant, Rugby, England


Involvement Full time on site Commercial Management Service. Erection of Kiln Line and associated works from Free Issue material for a new cement plant on behalf of John Young. In excess of 400,000 manhours liquidated.

Duties included being responsible for all commercial aspects in respect of dealings with client and sub-contractors. Achieved the demonstration of a 40 week extension of time and payment of £6 million in variations and claims.

Subcontract Value: £9,850,000 (Labour only)

Final Account Value: £17 million (labour only) Overview


Conversion of the M.V. Audacia


Full time Commercial Management services. IAA were employed by Babcock Design & Technology to provide a Commercial Management service for the production of detailed design drawings, for the conversion of the Audacia to a dynamic pipe laying vessel. The works were carried out under bespoke contract conditions.

Our primary role was to manage Babcock Design & Technology’s commercial risk on the project. Commercial procedures were reviewed to ensure compliance with the contract and a full time Commercial presence was maintained to assist with client correspondence, client reporting, internal cost reporting, production of invoices, change control and commercial strategy.

Subcontract Value: £6,000,000

Final Account Value: £9,200,000