After this $350 million modernization project of a paper mill was halted due to projected major cost overruns, Revay and Associates was engaged by the controller, Ernst & Young, to act as a project neutral. In that capacity, Revay performed a verification of all outstanding invoices and claims for some thirty contractors. This included both progress payment requests and claims, including design changes, delay and loss of productivity. The majority of the $100 million face value of outstanding invoices and claims were resolved.
Revay was mandated to:
- Review the contract terms as compared to the actual conditions encountered during the project execution;
- Assess the value of delay and loss of productivity claims;
- Verify claimed rates against those included in the contract and the collective agreement;
- Provide recommendations to the controller.