Contract Audit

Contract management is the core of everything EQP does. It’s where we developed our proprietary methodology and built the technical depth that underpins our entire portfolio.

Over nearly 20 years, we have structured, audited, and optimized contracts in complex operations, translating contract management into financial and operational results.

What challenges do companies face in the market?

Contract owners often manage contracts without full technical command, relying on informal practices and little evidence based verification: measurements approved without validation, outdated documentation, and poor visibility into what’s actually being executed.

Without a structured analysis:

  • Financial divergences go unnoticed
  • Nonconformities accumulate over time
  • Labor, regulatory and operational risks are not identified
  • Renewal or renegotiation decisions are made without a concrete basis

When the problem shows up:

  • Financial losses are already consolidated
  • Liabilities materialize in litigation or assessments
  • The company cannot prove compliance
  • The operational and reputational impact is relevant

What is a Contract Audit?

It is an independent verification that compares three dimensions:

  • Contract (clauses, scope, SLAs, obligations)
  • Documentation (certificates, insurance, measurements, evidence)
  • Actual execution (what happens on the field)

EQP does not perform only document analysis.
Verification is carried out on site, validating whether the operation truly adheres to what was contracted.

The result is a complete diagnosis with:

  • Nonconformities classified by criticality
  • Quantified financial divergences
  • Identified risks
  • Structured recommendations for decision making
Important: It is not optimization. It’s not renegotiation. It is a diagnosis of compliance and compliance.

What are the benefits of Contract Audit?

Compliance and Risk

  • Risks identified before becoming liabilities
  • Reduced exposure to fines and litigation
  • Validation of documentation and actual execution of services
  • Structured preparation for inspections and due diligence

Financial

  • Financial discrepancies identified and quantified, with recoverable or correctable values
  • Identification of undue charges and inconsistent measurements
  • Basis for future financial adjustments

Governance

  • Clear and impartial view of the status of contracts
  • Solid basis for strategic decisions
  • Evidence for committees, audit and board
  • Increased transparency and traceability

Supplier Management

  • Decisions based on evidence, not perception
  • Identification of execution failures
  • Reducing dependence on informal relationships

What results have we already delivered with Contract Audit?

Segment
Contract scope
Identified situation
Result achieved
Mining
Magnet maintenance (vibrating screen)
Take or pay contract with recurring stoppages and low adherence to actual use. Cleaning clause not executed due to lack of infrastructure and lack of awareness by the contract owner.
Production impact
US$ 3 million/year
Mining
Ore transport and handling
Execution outside the contract scope, informal agreements, SLA failures, and lack of systematic validation of measurements.
Identified divergences
R$ 1.1 to 1.9 million in a single contract
Mining
Off road tire repairs
Active operation without a current contract, with people and assets without contractual coverage or insurance.
Critical risk
Recommendation for immediate demobilization
Agribusiness
Employee meals
Third party workers used the cafeteria at the client’s expense, even though meal costs were already included in the fees paid to the contractors.
Undue payments eliminated
R$ 160 thousand/year
Agribusiness
Bagasse supply
Measurements were approved without accounting for contractual stoppages. The review relied on gross hour meter readings and lacked technical control by the contract inspector.
Savings per equipment
R$ 80 thousand/year, with scale potential