Case Study / A large telecommunications network builder
Our client undertook a programme of work to close Corridor Access Requests (CAR’s) from their key client Auckland Transport. The volume of CAR’s provided were constrained until the outstanding requests were closed. This had a significant effect on our client as it impacted programme timing and resourcing. As a result of this, standard financial controls were not put in place and our client was concerned that they could be exposed to financial risk through leakage. In this particular case, leakage was defined as the variance between the actual amount paid to the contractor and the physical work undertaken using the desired approach and agreed rates.
LSI was requested to review the CAR closeout programme in order to identify issues, opportunities for improvement and any obvious claw backs.
56% of the sample had leakage incidents
Identification of 8 % leakage ($400k) through poor financial and project practices
Financial controls and procurement activities reviewed and revisited
Ongoing audit programme is now in place
LSI developed an approach to take a stratified sampling review of the 523 cabinets involved in the AT CAR closeout project. This gave an exposure of risk across costs (low to high) and contractors. The key steps in the approach were:
Once the sample had been identified, LSI used the following approach to review each piece of work:
Proven Success: Real-World Results from Our Clients
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