Shipbuilding Business Guide
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All 17 Documented Cases
Excessive Overhead in WPQR & NDT Documentation Management
Compliance team (1 FTE): AUD $70,000/year. Testing services outsourced: AUD $5,000–$15,000/year. System maintenance & audits: AUD $10,000/year. Total: AUD $85,000–$95,000 annually. Digital automation reduces to AUD $35,000–$45,000.WPQR creation, maintenance, and audit require: (1) test weld execution; (2) mechanical testing (tensile, hardness, bend tests); (3) documentation compilation; (4) supervisor review; (5) archival and retrieval. Multiple material alloys (structural steel, stainless, aluminium per source [5]) multiply procedure count. Manual workflows cause delays and rework.
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 annuallyEarned Value Management in Australian Defence shipbuilding (e.g., Air Warfare Destroyer program[6]) reports schedule and cost variances but lacks profitability indicators. Project managers cannot assess daily profitability without separate financial reports, leading to delayed corrective actions.
SOPA-Nichteinhaltung und Adjudikationskosten
Adjudication proceedings: AUD 5,000-50,000 per dispute (legal costs, expert fees, administration); penalty interest on withheld amounts: 10% p.a. on unpaid claimsUnder SOPA, if a respondent fails to provide a payment schedule within required timeframes, or provides a schedule showing non-payment without reasons, the claimant can pursue statutory adjudication. Adjudication proceedings incur legal fees, expert assessments, and administrative costs. Manual claim management systems increase error rates, leading to non-compliant claims, disputed schedules, and adjudication escalation.
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).Per [1], best practice requires: (1) detailed change order requests with scope/cost/schedule impact; (2) documented review by owner/engineer; (3) written approval with all party signatures; (4) clear tracking of all changes. Absent these, disputes arise over: was change approved? What is fair pricing? Who bears delay cost? Australian courts (e.g., NSWSC, Federal Court) have awarded damages of AUD 500K–5M+ in construction contract disputes. Smaller disputes settle for AUD 50K–500K in mediation/legal costs.