Quote:
Originally Posted by Tomvart
Wow! That's not exactly a small amount!!
Can I be cheeky and ask your opinion on why it happened e.g. was it design creep or mismanagement of the project (customer or supplier?), or perhaps both?
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You are never cheeky Tom, pain in the ars* but NEVER cheeky
Only kidding my friend
Most of the overspend was down to simple bad management in costing and approving changes to the specification during the build phase. Our finance department took their eye off the ball as regards obtaining contract variation cost approval and put simplistically didn't monitor the costs piling up against the contract. As for the shipyard side it could be put down to acquessing with requests for changes or additional work without first obtaining approval from the owner in accepting the cost implications and additional time required. The situation rapidly deteriorated into one where the contract simply ran out of control and it was only when the final reckoning was established was the full horror revealed. Obviously the first reaction of the ship owner was to denly any and all liability for the situation and simply demand proof of agreement to the contract changes which were not available because they were never documented to any official extent. All in all an object lesson in how NOT to manage a contract
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Anything God didn't create was made by engineers.
I try so hard to make things idiot proof but they keep making better idiots
