Our Experience
Life Sciences Facility
This confidential project involved the delivery of a life sciences production facility in Pennsylvania for a leading pharmaceutical client. The project required a commercial and incentivisation mechanism capable of attracting meaningful competition from the supplier market, while driving the winning bidder to deliver against the Owner's primary objectives of schedule and cost certainty.
We were engaged to design and implement that commercial mechanism, working alongside the Owner's legal counsel from early-stage commercial structuring through to contract execution.
The Owner needed bidders to provide cost certainty after Concept Design, despite a market where suppliers could pursue lower-risk opportunities elsewhere. The Owner required a commercial and incentive mechanism that would encourage the successful bidder to reduce costs during Detailed Design and Construction — without inflating upfront pricing to create future gains during project execution.
Striking this balance demanded a structure that was both compelling to the market and protective of the Owner's position throughout delivery.
Working with the Owner's legal counsel, we developed a commercial mechanism that gave the Owner full transparency into the contractor's costs. The mechanism prevented the contractor from profiting from non-value-added activities and instead rewarded actions that directly reduced the project's overall cost and supported schedule performance.
The incentive structure offered meaningful rewards designed to encourage the right behaviours while avoiding additional cost exposure for the Owner. We also supported the Owner through bid clarifications and negotiations, working with legal counsel to finalise the commercial and incentive mechanisms within the contract.