Hinkley Point C Nuclear New Build

Cost Verification and Commercial Assurance services

CAPITAL PROJECT: Hinkley Point C Nuclear, New Build
OVERALL VALUE: £19.6bn
CLIENT: NNB GENCO LTD (NNB)
MJA CONTRACT: Multi-Disciplinary Audit and Assurance Services
CONTRACT FORM: NEC PSC Option G
CONTRACT PERIOD: January 2016 (Ongoing)
MJA PACKAGE VALUE: £8.46m

Our Approach & Solution

The Hinkley Point C Nuclear New Build project is one of the largest and most complex Infrastructure projects in Europe.

It is the first Nuclear Power Station to be built in the UK since 1995 with enabling works commenced prior to the Financial Investment Decision (FID) in late 2016.

The project has involved numerous stakeholders, both major and local, with wide-reaching considerations and varying demands.MJA was commissioned on a framework from Jan 2016 to provide Cost Verification and Commercial Assurance services “cross-project” as an independent, non–affiliated SME with substantial industry experience.

MJA has designed & embedded a full suite of audit procedures to ensure compliance with international audit standards and demonstrate class-leading performance and has inspected, verified & assured over £3.5bn of sunk costs to date.

Capital Project: Hinkley Point C Nuclear New Build
Overall Value: £19.6bn
Client: NNB GENCO LTD (NNB)
MJA Contract: Multi-Disciplinary Audit & Assurance Services

Contract Form: NEC PSC Option G
Contract Period: January 2016 -Ongoing
MJA Package Value: £8.46m

Programme Scope Of Works

Production and implementation of the detailed Client Audit process and rolled out across the NEC & FIDIC contract suite. Delivery of audit remits for £1.4bn of project spending to date.

Audits encompass Client, Contractor and Consultant organisations across UK & European supply chains tiers 1 -4. The Audits are produced by specialist blended teams undertaking multi-disciplinary audits & assurance/ governance reviews including:

Commercial and Contract compliance
Cost verification: We have identified & overseen the close-out (ongoing)of disallowed & non-defined costs totalling 7.5% of the audited spend.
Coaching and implementation of findings across payment certificates
Coaching and collaborative working between the Client and Contractor commercial teams
Technical design and construction processes review
Senior leadership and project team capability assessments
Quality and client corporate governance assurance
Contractor claim audits, advice and guidance for settlement
Provision of ad-hoc & CPD training to Clients and contractor teams through a number of subject
matter expert & lessons learned workshops
Provision of Advisors for strategy and business improvement.

Set against a comprehensive stable of contract forms and systems including:

Target cost, lump sum, cost reimbursable contracts (NEC3 Suite, FIDIC, JCT etc)
Cost management systems (COINS, EDIFICE, Oracle etc.)
Business management systems (Oracle, SAP etc.)
Project management systems(Primavera, Microsoft Project, CEMAR etc)
Document / Contract control systems (EB, CEMAR etc)

Client Deliverables

A toolbox of audits and assurance products has been created for the Client that can be drawn down and
implemented across pre & post contract phases and subsequently rolled out across the future National
Nuclear New Build Programme – cut to suit across the following range:

High level – strategic review, management information
Light touch – low sample rates, speedy turnaround
Intermediate – moderate sampling rates, targeted detailed reviews
Full – higher sampling rates, detailed review of all elements
Captured, published and overseen close- out (on-going) for
400+ non-conformance reports
800+ recommendations
80+ formal lessons learned feeding programme-wide business improvement

MJA BENEFIT

As a result of our ongoing involvement with Hinkley Point C, MJA has been able to develop & improve the intellectual offering we can provide to a prospective client. We have a team of 15 dedicated Auditors from a blended Accountancy and Commercial Management background who are able to supplement Audit protocols with complementary skills. All resources are trained to CQI/ IRCA 9001 Internal Auditor Level to supplement their
Professional Accreditations. We operate within stringent environments and are well-versed in corporate governance, business information security, personal information storage and communication constraints including GDPR and ISO standards.

“MJA has been able to develop & improve the intellectual offering we can provide to a prospective client”