🇦🇺Australia

Unzureichende EVM-Konformität gefährdet Defence-Verträge

2 verified sources

Definition

Defence contracts require certified EVM systems and periodic IBR/EVMS reviews conducted per Defence Supplement handbook[2]. Non-compliance findings can trigger: (1) payment holdback, (2) corrective action plans with associated delay costs, (3) contract re-baseline costs, (4) potential reputational impact on future tenders.

Key Findings

  • Financial Impact: Payment holdback: 5–10% of milestone invoices (typical: AUD 10M–50M on major contracts); Remediation cost: AUD 50,000–500,000 per audit finding; Schedule delay: 2–6 weeks per re-baseline = AUD 500K–2M cost of delay
  • Frequency: Integrated Baseline Reviews at contract start, major phase gates; EVMS compliance reviews annually or per contract schedule
  • Root Cause: EVM system configuration gaps (incomplete cost accounts, WBS not aligned to contract SOW, data integrity issues). Manual data entry and lack of automated controls increase error risk and audit exposure.

Why This Matters

The Pitch: Shipbuilding contractors face AUD 50,000–500,000+ in remediation costs and delayed milestone payments when EVM audits reveal non-conformance. Robust EVM governance (centralized data controls, automated WBS integration) eliminates audit risk and payment delays.

Affected Stakeholders

Project Controls Manager, EVM System Administrator, Contract Manager, Compliance Officer

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Financial Impact

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Verzögerte Rentabilitätssichtbarkeit in EVM-Berichten

Estimated 40-80 hours/month × AUD 150/hour (Project Controls role[3]) = AUD 6,000–12,000/month per project; multiplied across Defence contract portfolio (estimated 3-5 major programs) = AUD 216,000–720,000 annually

Fehlende Echtzeit-Rentabilitätskontrolle in EVM führt zu Kostenschleichern

Industry benchmark: 2–5% revenue loss from undetected cost creep in shipbuilding[4]. On typical AUD 500M Defence contract: AUD 10M–25M at-risk margin

Unbilled Change Order Cancellations Without Compensation

AUD 50,000–250,000 per major shipbuilding project (5–15% of total change order costs), based on typical re-pricing labor (30–80 hours @ AUD 150/hr) and provisional supply commitments.

Excessive Administrative Rework from Change Order Re-Pricing

AUD 13,800–41,400 per change order (92–276 hours @ AUD 150/hour loaded labor rate). On a 10,000-ton frigate with 150–200 change orders, total waste = AUD 2.07M–8.28M.

Contract Dispute and Legal Liability from Poorly Documented Change Orders

Median dispute cost: AUD 200K–500K per project. Large-scale frigate contracts (AUD 2B+) risk AUD 2M–5M+ in dispute remediation, plus 12–24 month schedule delays (carrying costs, financing charges, opportunity cost).

Shipbuilder Price Re-Negotiation Risk and Customer Churn

Indirect loss: AUD 500M–5B in foregone future contracts or competitive disadvantage on next-generation tenders. Direct loss: AUD 50M–500M in disputed change orders, carrying cost on withheld payments, and legal remediation.

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