Turnaround of Indian EPC Company's Offshore Division
1. From the inception of the project in May 2013 until the contractual completion date (Nov 2014) only 5%project progress had been achieved.
2. Original contract value was $30 million less than the cost to complete (CTC).
3. No working capital was available from the customer to complete the project.
4. No proper project organization was in place, and there was a lack of procedures, competent resources and operational assets.
5. The completion date and insurance had lapsed.
6. There was mistrust between the our Client and its Saudi customer.
We deployed an interim president to complete the project without damaging the Client’s reputation further. The plan was to:
1. Rebuild the trust and confidence between the WIL Group’s Client and the Saudi customer.
2. Establish a competent project team.
3. Amend the contract, including getting additional time to complete the project.
4. Revise the project schedule with Client's approval.
5. Set up project office.
6. Find subcontractors with the right capabilities.
7. Develop a specific execution plan including subcontractor involvement for pipe laying and offshore surveys.
8. Convince the Client's Saudi customer to provide additional working capital and cover the gap between contract value and CTC.
The WIL Group’s interim executive quickly rebuilt trust with the Client’s Saudi customer and achieved the following results:
1. The client was given a 21‐month extension from the original completion date.
2. A project office was set‐up and a new project organization was approved by the customer.
3. A detailed revised project schedule and execution plan was presented and approved.
4. Agreement was reached with the customer to support the project with working and to look for ways of covering the CTC gap.
5. Long lead procurement items sourced.