WaterSector

Chartered Accountants providing cost assurance on major open book contracts

The Orange Partnership

Water

The Orange Partnership has extensive experience in the water sector spanning AMP5, AMP6, AMP7 and is now helping clients prepare strategic and cost-effective assurance approaches for AMP8.

We have in depth experience in the sector working on both major capital builds and standard planned repair and maintenance contracts. We have framework contracts with two major UK water companies, and regularly support a number of others on complex, high-risk contracts their internal or generalist QS commercial support are not equipped to deal with.

Within this highly regulated industry pressure upon margins can be intense. Water companies are delivering against a mandated range of outcomes, expenditure, and efficiency targets which mean the model of capital programmes is more complex than ever before.

The benefit of using The Orange Partnership is clear to our clients in this sector. Our deep sector experience coupled with our audit know-how means we deliver experience and insight, resulting in significant recovery of costs and improved working relationships.

Sector Expertise

The TOP Approach

As water companies wrestle with how to achieve financial efficiencies, it is important to know that the costs being charged by suppliers and contractors are in line with the contract and, particularly under cost reimbursable or target cost arrangements, free from any overcharges. We focus our specialist assurance resources in the areas that have the most risk and where we can add most value, so our client sees the greatest return for the lowest cost.

The Orange Partnership audit approach is fluid and cost effective, responding to risk. Our review work is targeted, and we have strong collaborative relationships with client Commercial Managers. We do not simply provide “bums on seat”.

We work collaboratively with water clients and their contractors and suppliers, over a number of years to reduce the risk of mischarging and drive accuracy of “right first time” applications for payment. We currently carry out 30 plus risk-based assurance reviews for water clients every year.

How we can help

Strategic reviews of current assurance provision
People actualisation audits
Project overspend reviews
Assurance over defined cost accuracy
Contractor set up and financial control reviews
Reviews of high value, high risk second tier subcontractors
Upskilling of in-house commercial staff and external Cost Consultants in best practice audit so as to conduct simple, low risk reviews in house