Deloitte Launch Cost Recovery Analytics Centre
Deloitte Ltd has announced the launch of their Cost Recovery Analytics – Centre of Excellence for the Caribbean and Bermuda.
A spokesperson said, “Large capital projects, such as infrastructure development i.e. roads, waterways, airports, educational institutions, hospitals, expanding oil pipelines, power plants and storage facilities, typically require substantial up-front capital, long lead times, and highly complex contracts that add up to millions in expenditures.
“These contracts are often complex, difficult to understand or vague, which could result in misinterpretation, inadequate monitoring, and significant overpayments. Without having a clear picture, projects are at risk of contractor charges that do not match original quotes or agreements; duplicate charges for materials, labour, or per diem payments; and excessive contractor time charges.
“Labour rates and other costs can fluctuate throughout the project lifespan. By the time escalating expenditures are discovered, it’s often too late to do anything about it.
“Deloitte’s cost recovery analytics works behind the scenes, allowing you to monitor expenditures, prescribe solutions early on, and predict potential budget overruns by automatically reviewing massive amounts of contractor data.
“Potential errors are identified based on details within your contracts and sample invoices, combined with well-tested analytic techniques that uncover payment discrepancies. Recoveries are proven to be in the range of 1 to 5% of total contract spend, so our solution is self-funding.
“In addition, the program provides valuable insights to enhance existing processes and controls to prevent cash leakages going forward.
“Deloitte Analytics can identify potential overcharges from work that was performed in the past and provide insight into how you can improve your accounts payable processes to avoid overpaying in the future.
“Bottom line? Analytics can help you uncover—and potentially recover— money that could have been lost.
Benefits of the program include recovery of costs; no one wants to pay more than they owe. Deloitte Analytics can help you identify where you may have overpaid—and provide the data needed to effectively dispute and recover project or operational costs.
“Move from hindsight to foresight; Deloitte Analytics can help you identify the source of past budget overages and project inefficiencies, allowing you to negotiate clearer, more effective contracts in the future.
“Improve oversight; you’ll gain insights that allow you to improve project management and contract governance by incorporating leading practices and process improvements that can prevent overpayments before they happen.
“Thinking ahead; don’t wait for your organization to experience a project derailment or substantial budget overages. Using cost analytics can reveal gaps in your contract governance and payment processes that could help you avoid excess expenditures in the future and anticipate potential risks.
“Reclaim what’s yours; cost recovery analytics can help you identify and predict projects and contracts where you’re likely to experience cost overruns. The insights gained could have a big impact on how you manage vendors, improve supply chain visibility, standardise invoicing, reduce regulatory risk, and more.
“For more information or to see actual samples of analytics tools available contact Deloitte at cbcanalytics@deloitte.com.”
