Design Special Invoice Payment System

Invoice Partnering Payment system a mechanism that is used to make payments direct to subcontractor(s) upon the request of the main contractor. Worked at Shell Petroleum Development Company of Nigeria and developed the framework and process maps for the invoice partnering documentations, approvals, payments, reporting and compliance. The invoice partnering payment system has direct impacts on payments to main contractor and subcontractors, project strategy, financing, cost management and project delivery.

Challenges: Ensuring that the tax and contractual relationships were rightly defined and maintained among the several parties – the company, main contractor, subcontractor(s) and the banks. As the Finance Manager, leading the project finance team to provide project finance and payment advisory to a “portfolio of seven flagship projects with complex and ambiguous technical and non-technical risks” was challenging.

Delivery: The project team provided payment advisory which was consistent with legal and contractual responsibilities by all affected parties in order to mitigate the impact of main contractor’s financial difficulties and adverse impacts on project schedule and overall costs. Our work enabled the project schedule to be maintained as subcontractors no more delayed supplies as they received direct payments. The project finance team had to lead negotiations involving company, main contractor, subcontractors and their banks to agree and sign a tripartite payment arrangement. This was a unique piece of work which is of great value to companies delivering projects.

Meet Dr Leesi Gborogbosi (2016 – Finance Manager Major Projects, Shell Petroleum Development Company of Nigeria)