Latin American Pipeline Operator - Power Expansion Project
Challenge
A Latin American pipeline operator needed to expand power generation capacity but faced high uncertainty around equipment reliability and vendor performance claims. Historical projects had experienced cost overruns due to equipment underperformance discovered only after installation.
Outcome
Project delivered on budget with equipment performing at contractually guaranteed levels. The system achieved 98% availability in first year, exceeding business case assumptions. Vendor accountability was clear throughout execution.
KVB-C2M® Application
Shifted contract terms from equipment specifications to guaranteed production capacity
Built LCC-based evaluation matrix for vendor selection that accounted for reliability risk, not just capital cost
Established FAT protocols with independent validation of performance claims
Structured payment milestones around operational performance demonstration, not just delivery