The document discusses CorGuv, a company that provides contract compliance services to assess clients' business contracts. It summarizes CorGuv's background, customers, scope of services, audit process, value provided through improvements, case studies, and business benefits. CorGuv's services include monthly contract checks, forensic investigations, root cause analysis, and reviews of procurement processes, new contracts, and awards to identify overcharges, reduce risks, and improve contractual relationships. Case studies show recoveries that are typically 5-10 times the cost of an audit. Business benefits include improved performance, costs savings, and relationships through increased transparency and trust.

1.  Click to edit Master text styles
 Second level
 Third level
Contract
Compliance
– Fourth level
» Fifth level
A Presentation by

2. Strengthening the Pillars of Business
 Click to edit Master text styles
 Second level
Aim:
 Third level
– Fourth level
» Fifth level
To inform clients of the
Contract Compliance Services
& Capabilities offered by
CorGuv.
2

3. Background & Skills
 CorGuv is 51/2 years formed after a successful SOX
implentation.
 Click to edit Master text styles
 Background & Skills:
 Second level
 Contract level
 Third Compliance/Management
 Forensic Investigations.
– Fourth level
» Fifth level
 Business Process & Risk Analysis.
 Project Management & Governance.
 Internal Control - System Design & Implementation.
 Joint Venture Auditing
3

4. Customers
 Apache North Sea.
 Click to edit Master text styles
 Second level  BG Group.
 Third level
 Centrica Energy.
– Fourth level
 level
» Fifth Premier Oil.
 Marathon Oil.
 Total E&P UK.
 Venture Petroleum
 BP Exploration.
4

5. The Scope of Contract Compliance Services
 Monthly Contract Checks
Checks on Scope, Rates, Invoices & Processes, Man
hours, Overtime, Burdens, Equipment & Running Charges
FULL SCOPE OF CorGuv’s SERVICES
Rates, Variation Orders, Amendments.
 Click to edit Master text styles
 Second level
 Forensic Investigations
 Third ‘Beyond the Paper’
 Investigative approach – level
– Fourth level
 Third Party pricing checks.
Feedback on ‘Actual’
 Cross-Referencing different» Fifth level
data-bases. Performance
 Process Reviews.
 Root Cause Analysis.
 Review & Improvements to:
 Procurement Processes.
 New Contracts.
 Award.
Long Term Benefits from a Holistic Approach5
5

6. Independent Contract Compliance Review
Initial Health Check
 3-5 days internal audit (normal rates).
 Initial report.
  Click to edit Master text options.
Proposal to proceed with commercial styles
 Agreement  Secondproceed.
on how to level
 Third level
Forensic Audit
– Fourth level
 Audit on contractor’s books.
 » Fifth level
Monetary and procedural.
 Findings and negotiating strategy.
 Root Cause Analysis for future contract improvements.
Negotiations on Findings
 Agree Negotiating Strategy.
 Negotiate Recoveries.
6

7. Value Through Improvements
Future Leverage on:
1. Risk Reduction.
2. Reduction of Overcharging.
10% 3. Reduction of Fraud
 Click to edit Root Causetext styles to:
Master Analysis applied exposure.
4. Cost Effective Contracts.
1.Existing Contract Conditions.
 Second level Tenders.
2. New
5. Contractual Relationships.
Future Savings
3.Invoicing Process.
 Third level
4.New Contracts.
5% Strategy
– Fourth level
Scoping
Recoveries
» Fifth level
Tender
Monetary
Improvements Evaluation
Findings
Award
7

8. Example
 5 year contract, £7,000,000 p.a
 Click to edit Master text
 Time taken – 25 days. styles
 Second level
 Actual Cash recovered £600,000:
 Third level £24,000 per day
– Fourth level
 Total Reward, £95,000: £3,800 per day.
» Fifth level
 Time Charged client-risk - £16,000: £640 per day.
 Contract Strategy Changes - £4,000,000: £160,000 per day
8

9. Why we have Something Special to Offer
 Experience – 30+ years in Supply Chain, Contracts,
Management, QS or Audit. All our staff are selected for their
Curiousity, Persistence, Maturity, & Focus on the client-supplier
relationship.
 Click to edit Master text styles
 Scope –Depth, Supply Chain, Root Cause Analysis, Follow-up,
 Second Improvements.
Sustainable level
 Third level
 Investigative Techniques – our proprietary process ensures
we find issues.
– Fourth level
 Focus – Commercial/Ethical, dedication to the task, can be an
» Fifth level
addition to company audit programs.
 Independent – Willing to seek out reality, no conflicts of
interest, completely confidential.
 Results – our Project Management approach delivers
benefits/value in a limited time.
 Commercial Flexibility –Standard Rates, Fixed Price or
Risk/Reward as appropriate.
9

10. Case Studies (CorGuv)
 Average recovery could be 5-10 times the cost.
  Click to edit Master text styles
NIC overcharges of £3.0m.
 Second level
 Identification of excess profits of £1.5m due to unethical third party
invoicing. Third level

– Cost level
 £700 m Project –Fourth Recovered - £40-50 m.
» Fifth level
 Checking of sub-contract costs showed 65% discount of £1.5 m not
passed on to client over 3 year period.
 Over charge on local delivery of 45% margin reduced to 5% (£1.0 m).
 Review of timesheets for engineering contract identified accounting
allocation errors resulted in over charging by £1.5m.
10

11. Business Benefits
 Performance
 In-depth insights and feedback of your contract's real performance.
 Improved contract/procurement strategies - through feedback of actual performance.
 Improved service delivery.
 Improved contract management.
 Click to edit Master text styles
 Costs Second level

 Cost Recoveries, if due.
 Third level
 Sustainable future cost savings – through improvement of contract strategy & drafting.
– Fourth level
 Reduction in the potential for unethical activity.
» Fifth level
 Relationships
 Improvements with JV partners.
 Improvements in client/supplier relationships – through improved transparency,
openness & trust.
 Time
 Time saved on dispute resolution.
 Time saved on invoice checking - due to improved invoice process/documentation.
 Risk/Reward deals - that avoid on-going consultancy costs and maintains our commitment.
11
Assurance that Contracts are cost effective, commercial & Ethical.
11

12. Summary
 Based on our Core knowledge of post-award performance
we can apply our experience at any point in the Contract
Cycle:
 Post-Award contract performance, Forensic Audits.
 Click to edit Master text styles
 Procurement & Award Phase.
 Second level
 Contract drafting.
 Third level
 Contract Management.
– Fourth level
 Contract Strategy.
 Setting up Compliance Regimes.
» Fifth level
 Health Check is a low cost entry point.
The Benefits . . . . . . . . .
We Recover for our clients what is rightfully 12
theirs. 12

13. Summary
 Click to edit Master text styles
 Second level
 Third level Cost Recoveries
– Fourth level
Historic Errors &
» Fifth level
Overcharging.
13

14. Summary
 Click to edit Master text styles
 Second level
Long-Term Improvements
 Third level
– Fourth level
Contract Management and
» Fifth level
Strategy.
14

15. Summary
 Click to edit Master text styles
 Second level
Experienced staff
 Third level
– Fourth level
Integrity, Curiosity, Maturity
» Fifth level
.
15

16. Summary
 Click to edit Master text styles
 Second level
 Third level Independence
– Fourth level
Free from operational
» Fifth level
pressures.
16

17. Summary
 Click to edit Master text styles
 Second level
Deterrence of Fraud
 Third level
– Fourth level
Fear of being detected.
» Fifth level
17

18. Testimonial
"CorGuv have undertaken a number of contract compliance
assignments on behalf of Apache . All of these assignments have
been performed efficiently & effectively and with minimal
effort/inputto edit Master text styles client . Without doubt CorGuv
 Click required from us as the
has delivered value on each assignment. Cash recoveries alone have
 Second level
been substantial although that was not the primary objective in
every assignment.level
 Third CorGuv have also assisted us to further clarify &
strengthen our contracts which has subsequently saved even greater
– Fourth level
costs in future contracts. CorGuv have a well developed process for
keeping audit costs to a minimum whilst maximising benefits. In
» Fifth level
particular, they treat the whole process as a project, focusing on
delivering value, including supporting us right up to the point
where recovery negotiations are complete. In short CorGuv offer a
compelling blend of experience and commercial knowledge that
delivers a complete service and I have no hesitation in
recommending their services."
General Services Manager, Apache North Sea
18

19.  Click to edit Master text styles
Strengthening
 Second level
 Third level
the Pillars
– Fourth level
»of Business
Fifth level
19

20. Early Intervention
Potential for Loss/Gain Recoveries: Higher
costs and lower leverage
Future Savings
limit the value.
 ClickSavings: Lower costs text styles
to edit Master
Recoveries
and higher leverage
 Second level
maximise the value.
 Third level
– Fourth level
Cost of Correction » Fifth level
Operation
20