Case Study: 3rd Party Invoices Supplier reduces $8 million in overspending with Management Controls' TRACK Platform

Deep Dive Into a Lump Sum Project Reveals $8 Million in Overspending

A customer referred to as 3rd Party Invoices Supplier was facing significant financial leakage and overspending on its lump sum contractor projects. They noticed that actual charges were much higher than planned and suspected noncontractual items were being submitted. They engaged Management Controls (MCi) to analyze their processes around contractor material spending and 3rd party supplier invoices.

Management Controls analyzed $140 million in contractor spend and identified $8 million in overspending. MCi implemented new standards for documentation and invoicing based on contract terms, creating tighter controls. This resulted in $3 million in actual savings and $5 million in process improvement savings. Through its continuous monitoring service, MCi now provides granular visibility and a standardized process to proactively identify and eliminate future value leakage for the client.