The Project
The Gallagher Report and subsequent legislation resulted in an obligation that fuel suppliers ensured that, from April 2010, all road fuels contained a minimum of 5% Biofuels. This requirement was later revised to 3.5% Biofuel by April 2010 and 5% by April 2013.
BP established that in order to comply with the recommendations of the Gallagher Report and subsequent legislation, they would need to roll out a programme of works to ensure Bio-ethanol storage and blending across 4 of it’s fuel depots by March 2010.
Depots at Kingsbury, Northampton and Hemel Hempstead required fully operational bio-gasoline blending solutions by the end of September 2009 and Hamble Depot required a fully operational import, denaturing, road distribution and blending solution by the end of March 2010.
Failure to meet the programme dates would have resulted in substantial penalties to BP.
Due to the time constrains of the programme and the potential penalties to the client, the client entered into a cost reimbursable contract with a contractor to design and build the bio-ethanol storage and blending solutions at the four depots. Design and construction commenced in the fourth quarter of 2008.
Due to the potentially escalating cost of the project, Graham Ellis Associates were appointed in February 2009 to provide cost control services to the client.
Description
Client: BP Oil Uk Limited
Graham Ellis Associates were tasked to carry out the following
- Carry out an initial review of the budgets, advise and implement savings on the budgeted figures.
- Formulate and implement an Earned Value Analysis monitoring process.
- Advise on the implications of the drafted contract.
- Formulate an interim valuation procedure which reflected the revised agreed budgets.
- Evaluated the Main Contractors interim applications for payment and certify payments due.
- Evaluated Client Direct Contractors applications for payment and certify payments due.
- Agree Final Accounts.
Contract Value: circa £25,000,000
Blending was achieved by the programmed dates and the project was completed within budget.
