Apollo Case Study
Project Case Study: Johnson Matthey Hydrogen Gigafactory - Contract and Commercial Management
Project Overview: Project M Services was contracted to provide comprehensive Contract and Commercial Management support for a specialist EPC subcontractor delivering a turnkey cleanroom and controlled environment across three floors of an existing building. This project was part of Johnson Matthey's (JM) £80 million investment in a state-of-the-art hydrogen gigafactory at their Royston site, aimed at scaling up the manufacture of hydrogen fuel cell components.
The hydrogen gigafactory represents a significant milestone in advancing sustainable technologies and decarbonising transportation, with an annual manufacturing capacity of 3GW of proton exchange membrane (PEM) fuel cell components.
Challenges Addressed:
A demanding and programme-driven client with strict deadlines.
Substantial ongoing project changes requiring robust change management.
Complex subcontractor management and final account negotiations.
Stringent cost control and margin protection.
Our Contribution: Project M Services assumed responsibility for all commercial and contractual aspects of the project, delivering key services including:
Risk Management and Mitigation: Proactively identified and managed risks to minimise financial and operational impacts.
Subcontractor Management: Managed subcontractor accounts, negotiated final accounts, and ensured contractual compliance.
Cost Control and Reporting: Monitored and reported on all project costs, margins, and expenditure.
Change Management: Priced, managed, and negotiated variations and change orders.
Monthly Applications: Produced and submitted monthly applications for payment to the client.
Commercial Meetings: Chaired regular commercial meetings with the client to align on costs, risks, and progress.
Financial Oversight: Delivered accurate and transparent End of Site Forecasts (EOSF) and Cost Value Reconciliations (CVRs).
Outcome: Through proactive commercial management and robust contractual oversight, Project M Services successfully navigated the complexities of a challenging client and a rapidly evolving project scope. Our efforts ensured:
Delivery of project milestones aligned with programme expectations.
Effective management of changes and variations without compromising margins.
Transparent cost reporting and financial accountability.
Positive resolution of subcontractor accounts and final account agreements.
About the Johnson Matthey Hydrogen Gigafactory Project:
Client: Johnson Matthey (JM)
Project Value: £80 million
Scope: Turnkey cleanroom and controlled environment across three floors.
Sustainability: Supports hydrogen fuel cell technology for zero-emission vehicles.
Innovation: Manufacturing capacity of 3GW of PEM fuel cell components annually.
Impact: Contributes to decarbonisation of freight transportation and supports the UK's net-zero targets.
Conclusion: This project highlights Project M Services' expertise in managing commercial and contractual complexities on high-profile infrastructure projects. Our strategic oversight enabled our client to deliver on their commitments efficiently while safeguarding financial performance and project outcomes.
For more information about our commercial management services, contact us today.
