Recovering Time and Cost: Supporting a River-Channel subcontractor through commercial breakdown

The issue

Quantik was engaged by a civil engineering subcontractor to provide commercial support to its operations and commercial teams on a river channel improvement project.

The main contractor had adopted a challenging commercial position, and the relationship between the parties was breaking down. In addition, the subcontractor was exposed to the risk of delay damages in relation to delays caused by an additional compensation event in the subcontract and sought Quantik’s support to secure entitlement to additional cost and time.

Our approach

Quantik began by holding an initial meeting with the subcontractor’s commercial and operational teams to establish a full understanding of the background and key issues.

We identified that there were issues with subcontract administration with regard to the issuance of early warning notices and compensation events, which was affecting their entitlement to additional time and cost. We also identified that impacted programmes were continually being rejected by the contractor, which was again affecting their entitlement for the delays caused by the compensation event under the subcontract. Recognising that programme acceptance had become a critical issue, the client introduced a planning consultant to assist with the impacted programmes, which had repeatedly been rejected by the contractor.

We then conducted a comprehensive review of all project documentation relating to the additional Compensation Event, ensuring a clear record of entitlement was developed and the CEs were valued in line with the valuation rules under the subcontract to maximise value.

Regular biweekly progress updates were held with the client’s team to maintain alignment and transparency. Quantik worked collaboratively with the operations and commercial client’s team to ensure submissions were robust, compliant, and fully evidenced.

The outcome

Quantik provided comprehensive commercial support throughout the process, preparing and issuing Early Warning Notices, Compensation Event notifications, quotations, and monthly valuations. In addition, we advised on the risks and opportunities associated with each compensation event to guide the client’s strategic decisions.

As a result of this work, the subcontractor successfully recovered additional costs and obtained an extension of time in relation to the additional compensation event in the subcontract, effectively negating the risk of liquidated damages being applied by the main contractor.