John Henry Group Commercial Assurance

Situation & Approach: John Henry Group (JHG) is a telecommunications contractor, who were contracted by a major network provider to deliver fibreoptic broadband to 40,000 homes in the Cambridge area. JHG engaged Deecon to conduct a commercial review of the Cambridge project, with a view to enhance revenue return and maximise cost savings. Deecon implemented improved processes within three key workstreams, which mitigated revenue loss in both client and subcontractor accounts. • Commercial Review: Assessed JHG’s commercial delivery structure through comprehensive documentation review and key stakeholder interviews, and created commercial assurance templates and implemented an electronic documentation of works. Built comprehensive evidence profiles to substantiate unclaimed Compensation Events (CEs), which involved compiling evidence of works to claim for outstanding CEs and devising a methodology to recover future CEs • Contract and supplier management: Created a baselined programme accounting for the start and finish of 180 Primary Nodes. Conducted exhaustive valuation of subcontractor accounts, including a deep-dive audit into one subcontractor’s total spend over 25-weeks, then implemented a standardised subcontractor invoicing process • Cost reduction: Benchmarked key site items through comprehensive audit of JHG’s spend data, to drive informed negotiation with suppliers Results: Commercial Review: • Introduction of automated Cost Value Reconciliation (CVR) model led to reduced manual processes and ensured effective data audit • Substantiated CEs to a significant total value Contract and supplier management: • Identified significant claims opportunity and issued a payless notice to claim for unevidenced works • Facilitated effective governance of subcontractor portfolio Cost reduction: • Enabled competitive procurement of key spend items • Ensured consistent sign-off for works and full visibility of all materials ordered on JHG's account