Case Study

How EY Compliance IQ modernized commercial compliance for Trans Mountain

EY’s innovative approach saved Trans Mountain more than C$228 million by enhancing vendor compliance and project management.

Client
Our efforts recovered over C$220 million in direct recoveries tied to invoices. By proactively auditing over 7 million line items in real time, we prevented billing errors, upheld contract terms and fostered smoother vendor relationships, delivering greater value with less effort.

Trans Mountain Pipeline

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The better the question

How can we modernize compliance for complex projects?

Trans Mountain faced significant challenges in managing vendor compliance and cost control.

The Trans Mountain Pipeline is one of Canada’s most strategic infrastructure assets, serving as a vital link between Alberta’s oilsands and the west coast. Following a major expansion in 2024, which increased the pipeline’s capacity from 300,000 to 890,000 barrels per day, Trans Mountain encountered significant challenges in achieving vendor compliance with contractual terms. The complexity of the project, involving billions in construction spend and lengthy invoices, made it increasingly difficult to track vendor performance and validate costs effectively.  

A visual summary of the standard contracting process, highlighting key stages where cost leakage may occur and identifying its primary causes.

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In this environment, the price of noncompliance can be astronomical. With a history of processing invoices that could span hundreds of pages, Trans Mountain faced the risk of overpayments and inaccuracies that could go unnoticed for months or even years. Recognizing the potential for value leakage averaging 3% for standard contracts and up to 10% for complex ones — Trans Mountain sought a solution that could enhance compliance and reduce costs.

 

EY worked with the organization to explore whether a modernized tool could address these challenges and improve project management.

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The better the answers

Implementing EY Compliance IQ to enhance vendor compliance

EY Compliance IQ reduced noncompliance rates and identified significant cost savings.

To tackle these challenges, EY introduced Compliance IQ, a proprietary tool designed to integrate advanced technologies and provide real-time insights into vendor data. This innovative solution enabled Trans Mountain to efficiently review all general construction contractor charges, identifying invoice errors before payments were made. By automating compliance checks, EY helped Trans Mountain shift from a traditional post-payment recovery model to a proactive, real-time compliance approach.

A visual comparison of traditional vendor compliance versus Compliance IQ, emphasizing the advantages of transitioning to Compliance IQ.

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The results were impressive: Trans Mountain’s noncompliance rate dropped from 17% to 2%, showcasing the effectiveness of the Compliance IQ tool. Furthermore, the implementation identified more than C$228 million in noncompliant, unsupported or inefficient spend. Specific examples included discovering that Trans Mountain was overpaying for equipment rentals. For instance, an analysis revealed they were paying approximately C$15,000 per day for equipment that was only in use for about five hours a month. This significant gap led to renegotiated contracts that saved substantial costs.

 

The tool also facilitated the generation of dashboards and reports that provided clear benchmarking and insightful guidance on next steps. Using robotic process automation (RPA), the EY team was able to analyze vendor spend and flag discrepancies in real time. This not only improved accuracy in invoicing but also fostered better relationships with vendors, since issues were resolved before payments were processed.

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The better the world works

Creating a sustainable future through enhanced compliance

EY’s solution has a lasting impact on Trans Mountain’s operations and cost management.

From February 2020 to October 2024, EY’s Compliance IQ enabled Trans Mountain to recover, avoid or reject over C$228 million in costs. This transformation generated a remarkable return on investment of 16.5:1, showcasing the effectiveness of the solution. The introduction of site compliance auditors further enhanced the compliance process, creating a collaborative environment between site teams and project management.

A Compliance IQ example dashboard

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The positive ripple effects of Compliance IQ extend beyond immediate cost savings. Trans Mountain has improved its project controls, contract management and procurement processes, establishing a source of truth for project costs. The company also achieved enhanced fatigue management capabilities and a significant reduction in standby, contributing to a more efficient operational environment.

A visual comparison highlighting the benefits of Compliance IQ over traditional vendor audit compliance.

As Trans Mountain transitions from construction to operations, the insights gained from Compliance IQ will continue to drive efficiency and effectiveness in their operations. The tool has not only enabled them to identify and implement performance improvement opportunities, it has also created a framework for ongoing compliance monitoring.

Moreover, the lessons learned from this collaboration highlight the importance of involving all internal stakeholders early in the process and maintaining open lines of communication. By keeping site leadership engaged, Trans Mountain was able to shift compliance from a “push” to a “pull” approach, resulting in better outcomes for all parties involved.

How EY can help

The team

John Penner

EY Canada Supply Chain Risk Leader
Enjoys spending time with family and biking or snowboarding down large mountains.
Calgary, Canada

Matt Mura

EY Canada Partner, Consulting
EY Canada Partner in Consulting. Former resident of Wisconsin and Texas.
Calgary, Canada

Terry McKay

EY Canada Oil and Gas Leader
There has never been a more exciting or critical time in our sector which in turn leads to immense opportunities for people wanting a career that makes a difference.
Calgary, Canada

Dr. Lance Mortlock

EY Canada Managing Partner, Industrials & Energy
Forward-thinker. Strategist.
Calgary, Canada
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