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Whether you're engaged in upstream, mid-stream or down-stream operations in the oil and gas industry, your business depends on a complex network of suppliers and contractors. These vital relationships are often governed by contractual agreements that your company has spent valuable time and money negotiating.
Once in place, however, these contracts often go unchecked—allowing errors in rates, terms or other factors to creep into the billing and payment process. Compounded over time, such discrepancies can seriously erode your profitability and operational control.
As a leader in lost profit recovery, CPRS knows how and where to zero in on problem areas in your contract-based spend to assess for compliance in your billing and payment transactions. Expense issues we target in our review include:
If anomalies are found, we'll manage the claims process to recoup your losses while providing strategies to address the root causes of errors.
Leveraging our energy industry perspective, we can also help you evaluate contract pricing and terms against best practices to improve your negotiation stance.
Review of Large Scale Capital Spend
A focus of our recovery expertise is the oversight of major growth or maintenance capital spend projects. These carefully planned and executed initiatives involve a tremendous spike in third party contractors and increased labor and material costs.
Whether they involve infrastructure construction, upgrades or maintenance (such as turnarounds, shutdowns and outages), these events are costly, critical and conducive to major payment errors and overcharges. Given the size and complexity of the spend associated with these undertakings, it is in your best interests to verify expenditures before or shortly after payment.
Over the life of the project, CPRS experts will provide a detailed review of supplier invoices, their supporting documentation and contractual terms to assure compliance. Errors are identified and claims are made to return money to your bottom line. Incorrect billing from vendors typically accounts for 2-5% of spend during medium to large scale capital projects.