It is never desirable to have to engage in formal dispute resolution. Statistics show that the likelihood of being involved in a dispute resolution process is much greater in the construction industry than most other industries. At Southern Cross we are very proud of our record of resolving disputes through negotiations between clients and the other party(s) involved, achieving a fair and reasonable resolution.

Traditional Results

Traditionally, issues are allowed to grow into disputes as the resources dedicated to the project are primarily focused on project delivery. Eventually, the issues and disputes become so large that the project is negatively effected. Stakeholders and decision makers are not in a position to make informed responses as there have been no resources dedicated to a primary focus of the identification and resolution of issues and disputes.

The Southern Cross Advantage

We provide our clients with a project health check that typically includes, amongst other items, a litigation readiness check, pre award and post award claims likelihood profiles, claims avoidance strategy, claims mitigation plan and claims management plan. We work with our clients to update these products when appropriate by monitoring key indices and metrics. Once the potential impact of claims reaches our clients’ risk tolerance, we have a greater involvement in the project. We focus on providing you with a successful project outcome. We work in compliment with your project team enabling your team to focus on what they have been hired for, project execution.

We work proactively to avoid future issues, mitigate current issues and resolve all outstanding disputes. We develop negotiation plans and mediation plans to ensure the correct information is developed and retained. We provide reporting that enables project stakeholders and decision makers to fully understand the issues, allowing them to make informed decisions.

Southern Cross Results

We are very proud that Less than 0.05% of disputes managed by Southern Cross make it to litigation. This level of success is achieved through or dispute resolution plans that map out the best strategies to resolve the disputes at hand. Whether we are involved in negotiations or mediation our team will skillfully work towards a fair resolution while keeping stakeholders and decision makers fully informed. All this is achieved without detracting from the project teams focus for this project and future projects.

The impact of failed projects can be devastating and far reaching for all parties involved. Hence, the effective management of enterprise and project risks are critical for companies investing in infrastructure or in the construction industry.

Traditional Results

The traditional approach to managing risk through conventional project controls, procedures and management plans has historically resulted in projects in dispute, with 16% of projects likely to incur significant delays and 35% likely to experience a cost overrun.

Mega Projects due to their magnitude and complexity experience greater impacts than major projects with 92% of Mega Projects experiencing a cost overrun and 70% of Mega Projects experiencing schedule increases.

The Southern Cross Advantage

Our cutting edge approach to risk management has yielded result for our customers that are unparalleled. We begin with identifying your project risks or enhancing an existing risk profile. We match your risks to up to the minute technologies that delivery unbiased empirical data to our project risk centre. Here we monitor your project’s risks in real time and provide custom reports that allow project stakeholders to make informed and timely decisions.

Southern Cross Results

We have dealt with some of the largest companies in the world maintaining key portfolios on billion dollar, first of a kind, Mega Projects. In doing so we have identified project savings to our customers in excess of 30% of the project’s capital costs. Real saving, in real time.

Our Portfolio Contracting Management product enables our clients to deploy effective contracts that are tailored to reflect the risks of the project at inception, and enable effective contract management solutions which address the changing risk profile of the project as it evolves.

Traditional Results

Often the contract, in particular the management of the contract, is not given the same level of importance as other corner stones of a project. The lack of planning, strategy, preparation and focus on contract management will surely result in a failed project. Contract Management is more than recording the minutes of meetings.

The Southern Cross Advantage

Southern Cross Management Services Inc provides effective Portfolio and/or Project Contract Management solutions that will facilitate:

• Management of all contractual issues allowing you to focus on project delivery.
• Risk identification & apportionment of known, known unknown & unknown unknown risks.
• Selection of the correct contract model and bid evaluation criteria for the project.
• Contract Management which ensures that the project team is aware of the contractual requirements for the project.

Southern Cross Results

We are focused on enabling our clients to achieve successful project outcomes. Our five step process, which is equipped with the appropriate contract management tools and a high level of customised goal oriented focus, provides your team with the critical deliverable of effective contract management.

We have time and again achieved our primary goal and delivered troubled projects to successful conclusion.

Portfolio Contracting Strategy

• Stakeholder Identification, Stakeholder Management and Communication Plans.
• Portfolio Contract Management Schedule and Contract Resourcing Requirements.
• Project Risk Profile which encompasses Lessons Learned, Known and Unknown Unknowns.
• Contract Model Selection (Fixed, T&M, GMAX, Target, Unit & Hybrid)
• Contract Management Plans which include Documentation Generation, Tracking & Retention Guidelines, Risk Apportionment Matrix and Litigation Readiness Assessment.
• Training programs on topics such as Claims Awareness, Advanced Claims Methodologies, Contract Administration and Advanced Contract Management.

Our processes begin with a structured approach that evaluates risks & opportunities, portfolio & project interdependencies and project alignments & training requirements, including:

Contract Development

Contract Development facilitates the progression of the Portfolio Contracting Strategy into Requests for Proposals, and subsequently results in effective and enforceable contracts which allow for successful project delivery. Contract Development includes:

• Development of optimal bid evaluation and prequalification criteria.
• Review of Standard T&C and recommendations for inclusion of Special T&C’s.
• Negotiation Plans complete with Primary and Auxiliary Contract Obligations Mapping.
• Limit of Liability, Termination, Default, Securities and Dispute Resolution Evaluations.
• Strategy for the resolution of potential additional scope claims and delay claims.
• Training programs on topics such as Claims Awareness, Advanced Claims Methodologies, Contract Administration and Advanced Contract Management

Contract Management

The Contract Management Plan ensures that the contract is managed in accordance with the terms and conditions of the contract, and in turn generates recommendations for any contract amendment relating to emerging and changing risks. Contract Management includes:

• Development of the Contract Management Strategy and Stakeholder Reporting Plan.
• Kick off meetings including a project team evaluation profile of both parties project teams
• Analysis of the likelihood of Claims based on Contractors’ Reputation for Commercial Aggressiveness, Contract Price, Contract Team, First of a Kinds, Project Complexity etc.
• Contract summaries complete with finalised obligations and deliverables mapping.
• Contract Communication Protocol, Contract Health Assessments and Risk Review.
• Contract correspondence which is generated, preserved, monitored and responded to in accordance with the Contract Management Strategy and Portfolio Contracting Strategy.
• Request for Change Orders, which are handled as per the Claims Management process.

Contract Closeout

Contract Closeout ensures the contract is completed or finalised adhering to all protocols and guidelines. Contract Closeout includes:

• Termination or Default of the Contractor, if requested by the Project Stakeholder, in accordance with the termination or default evaluations conducted in the Contract Development stage of Portfolio Contract Management.
• Ensurance that all disputes are resolved by the Claims Management Process, the contract punch list is completed, and the release of securities and holdbacks adhere to terms and conditions.

Construction claims can be extremely complex and meeting the associated timelines can be extremely demanding. Successfully managing claims is essential as failure to do so can increase project costs, significantly delay the completion of construction projects and negatively affect corporate relationship.

Cost growth in the rand megaprojects database

Scheduled slippage in the rand megaprojects database

Traditional Results

Most companies that are involved in construction claims tend to provide expert testimony after the fact and are focused on assigning culpability to the various parties. The results are generally not favorable for either of the parties.

The Southern Cross Advantage

We are focused on enabling our clients to achieve successful project outcomes. We believe that prevention is better than the cure. Rather than assigning culpability after the fact, we work with our clients proactively throughout our four step process to avoid disruptive issues and substantially mitigate any claims that do occur. We assist you in:

• Managing claims, allowing you to focus on successful project delivery.
• Achieving fair and consistent treatment of all parties.
• Preventing and minimising the impact of legitimate and illegitimate claims.
• Ensuring the timely resolution of any claims & disputes.

How do we do this?

• We plan specifically the detailed manner in which each unique contract will be managed.
• We provide project specific claims training to the entire project team.
• We continue to identify any potential risks throughout the project lifecycle and ensure that the contract is amended as required.
• We develop and continue to adjust risk mitigation plans.
• We ensure effective formal and informal communication between all parties.

Southern Cross Results

We have dealt with thousands of claims worth billions of dollars on behalf of our clients. We have been able to accurately assess the true value of claims providing our clients with hundreds of millions of dollar in savings. However, more importantly we have provided critical support on difficult and complex projects ensuring that we achieved our number one goal. – We have enabled our clients to achieve to successful project outcomes.

Claims Prevention Strategies

• We deliver training programs on topics such as Claims Awareness, Advanced Claims Methodologies and Advanced Contract Management.
• We develop data management plans reflecting the Contract Obligations Mapping.
• We provide and/or execute contract management and claims management strategies.
• We track and update the Project Risk Register while maintaining legal privilege.

Claims Identification

• We identify any claims your may have against other parties.
• We monitor and tracks the status of all Claims and Disputes until they are resolved.
• We provide assessments of the legitimacy of the contractors’ and the owners’ claims
• We assess the legal entitlement of the claims principle and informs the other party.
• We generate claims recommendations for additional Work or changes in Scope, which will be incorporated into the existing Contract based on Case Law and Portfolio Contracting Strategy.

Claims Quantification

• We provide assessments of the contractors’ or the owners’ actual cost & schedule entitlements.
• We update the assessed value of the claim and Project Risk Register.

Claims Resolution

• We develop and execute Claim and Dispute Resolution Strategies.
• We create and present claims packages for the defence of claims, or the advancement of your claims.
• We determine preferred methods of Dispute Resolution and associated timeframes.
• We produce mediation/arbitration briefs & coordinate experts in conjunction with Legal Counsel.
• We draft/Review Notices of Dispute and/or Statements of Claim.

The impact of failed projects can be devastating and far reaching for all parties involved. Hence, the effective management of enterprise and project risks are critical for companies investing in infrastructure or in the construction industry.

Traditional Results

Traditionally the review of invoices relating to construction contracts has been left to the big audit houses. Unfortunately all too often this results in a paper based review of the invoices with a review team sharing one particular skill set. The results have been less than impressive.

The Southern Cross Advantage

We find savings that the big audit houses miss. We believe the reason is simply because we TRULY understand the construction industry. Rather than just Certified Management Accountants, our team consists of Engineers, Material Specialist, Project Managers, Estimators, Schedulers, Cost Analysts and Software Writers. We understand the materials, equipment and methodologies required for your scope of work. We literally can tell you if the nuts and bolts invoiced to you belong to your project, if the equipment charged to you actually suits the work shown on the construction schedule etc...

Southern Cross Results

During 2011, Southern Cross has reviewed approximately $500M worth of invoices on reimbursable construction contracts in Ontario’s construction industry. The return on the investments of direct savings enjoyed by our customers was in excess of 15:1. Our unique automated line by line cost review system provides an uncompromising and comprehensive analysis of invoiced costs on reimbursable contracts. The review identifies costs that should be included in overheads, duplication of charges on the same and multiple contracts, consumables and materials etc...

Our Forensic Cost Review system has had a positive impact on the supply chain of our customers; as a result of our reviews, contractors and vendors have improved their practices, which has further reduced the costs to our clients. Cost avoidance, due to subcontractors and vendors’ improved practices and behavioural changes, has also been considerable.

It is never desirable to have to engage in Litigation. Statistics show that the likelihood of being involved in either Litigation or Arbitration are much greater in the construction industry than most other industries. At Southern Cross we are very proud of our record of avoiding Litigation and providing both our clients and all other parties with a fair and reasonable resolution to disputes.

Traditional Results

Traditionally issues are allowed to grow into disputes as the resources dedicated to the project are primarily focused on project delivery. Eventually the issues and disputes become so large that internal or external legal counsel are engaged. The legal counsel move as quickly as possible to understand the issues and get up to speed. At best this becomes a reactive process, more often issues are dealt with retrospectively.

The Southern Cross Advantage

We provide our clients with a project health check that typically includes, amongst other items, a litigation readiness check, pre award and post award claims likelihood profiles, claims avoidance strategy, claims mitigation plan and claims management plan. We work with our clients to update these products when appropriate by monitoring key indices and metrics. Once the potential impact of claims reaches our clients’ risk tolerance, we have a greater involvement in the project. We focus on providing you with a successful project outcome. We work in compliment with your project team enabling your team to focus on what they have been hired for, project execution. We work proactively to avoid future issues, mitigate current issues and resolve all outstanding disputes. We work with your internal and external counsel not only to ensure that the correct documents are retained, we ensure that the correct documents are developed and distributed to the parties.

We develop litigation management plans that clearly define who does what, when. Should the requirement for litigation or arbitration arise, we provide further information to external counsel in an organized and methodical manner. We deliver the best documents to both legal counsel and expert witnesses as a basis for your case. This provides significant cost savings to our clients. We continue to provide the context and importance of key events and documents to the legal and expert team. This significantly reduces the disruption to the project.

The results of our processes are simple to understand and are summarised in three key points. are simple to understand and are summarised in three key points. 1. Reduction in the damages experienced by the parties 2. Reduced legal fees 3. Successful Project Outcomes.