Providing Specialized Accounting Services to the Legal and Corporate Communities

Construction Services

construction

Construction Services

Contract Compliance Services:

  • On behalf of construction project owners we verify that the construction costs invoiced to the owner are supported by accounting source documentation and are being billed by the contractors in accordance with the specific terms of the contract.
  • On behalf of construction project owners, we are engaged to be a participant in the monthly review and approval process for the contractor’s payment applications.

Dispute Resolution Services:

  • On behalf of the engineering and construction program manager responsible for a major production facility, we prepared the rebuttal and analysis of the claims submitted by the project owner for cost overruns, disruption costs, and failure to meet specifications.
  • On behalf of a project owner, we have analyzed and rebutted the contractor’s claims to demonstrate that the methodologies used to develop the damage claims were speculative and unsupported.
  • On behalf of a general contractor sued by its subcontractors, we reviewed and rebutted the subcontractor claims and prepared alternative claim calculations to reach a negotiated settlement between the parties.
  • On behalf of a project owner, we evaluated and rebutted the general contractor’s claims for cost overruns caused by differing site conditions encountered during project construction.
  • On behalf of a general contractor terminated by the project’s owner midway through the construction project, we quantified the contractor’s direct and consequential damages, including a loss of business value due to reputational impairment.
  • On behalf of a project owner, we quantified the magnitude of overbillings/errors/irregularities in the contractor’s invoices.
  • On behalf of a subcontractor of a parking structure project, we computed the direct and consequential damage suffered as a result of project interference, differing site conditions, scope changes, and delays and disruption.
  • On behalf of an insurance company, we quantified the costs to be incurred to rectify a material error and omission by a project’s lead engineer.
  • On behalf of a general contractor, we quantified the diminution in business value of a contracting company resulting from an owner’s breach of contract.

Advisory Services:

  • Developed the program management policy and procedures manual for an owner’s internal engineering & construction department to structure and support the department through the processes of budget development, procurement, fiscal management, and management reporting.
  • Assisted a transportation authority to enhance their rail construction program and processes by performing an operational and risk assessment review of the authority’s cost, schedule, quality and safety programs in effect for their construction projects.
  • Assisted a health care provider to manage their major construction project by preparing a detailed financial, operational and risk assessment review of the construction project, including assessing the design and construction department and the performance of the hospital’s hired service providers (design firm, construction management firm and general contractors).
  • Reviewed the management systems in use by an international construction contractor on a major civil project and prepared recommendations for improving the management systems in place to enhance the contractor’s project performance.

Additional Engagements:

  • Worked on behalf of a project owner, adverse to a project’s general contractor awarded three dropshaft contracts. The dropshafts were completed at a substantial overrun in cost and the contractor claimed significant financial losses due to differing site conditions and issuances of stop-work orders by the owner and its agents. The losses were alleged to have caused the majority venturer to lose its bonding coverage and eventually cease business. Work included assisting the attorneys during the discovery phase by reviewing financial documents to determine key, required and missing construction and financial documents. We analyzed the claims made by the contractor, prepared a detailed report rebutting the claims and provided testimony during a mediation proceeding where the owner favorably settled the case.
  • Worked on behalf of the general contractor in an arbitration who was terminated by a project’s owner midway through a major construction project. Due to this termination, the contractor alleged its reputation was impaired and its market share declined. Quantified the contractor’s direct and consequential damages. The consequential damages were computed under three methods: A statistical multiple regression model, an analysis of the contractor’s historical success rate in bids for selected types of contracts and an analysis of the prepared log of specific contracts where the contractor was informed they were not considered due to the previous termination. The statistical method provided a high degree of certainty and supported the other methods resulting in a successful claim presentation during the arbitration hearing. Arbitrators awarded a significant amount to the contractor for damages, including both direct and consequential components.
  • Worked on behalf of a project owner, adverse to the project’s general contractor. The general contractor was alleging cost overruns in excess of $20 million due to owner-caused delays during the construction of a $100 million data processing center. Work included analyzing and rebutting the plaintiff’s claim, assisting counsel in other expert testimonies and expert testimony. Testimony included a graphical presentation used during the arbitration demonstrating that the methodologies used by the plaintiff to develop the damage claims were speculative and unsupported. The arbitration panel ruled in favor of the project owner; no damages were awarded to the general contractor.
  • Worked on behalf of the general contractor sued by multiple subcontractors alleging cost overruns attributable to delays during the construction of a $200 million hospital, including review of the subcontractor claims, which totaled over $30 million. Work included analyzing the plaintiffs’ claims and revised claims, contracts and agreements, project records and depositions. Also prepared alternative claims and assisted counsel in other expert depositions. The general contractor settled successfully with the subcontractors during the pretrial hearings.
  • Worked on behalf of a project owner, adverse to the project’s general contractor. The general contractor was alleging cost overruns caused by differing site conditions encountered during the construction of a multimillion dollar outfall tunnel. Work included analyzing and rebutting the plaintiff’s claim and assessing the methodologies used by the plaintiff to develop the alleged damage claims. The parties reached a negotiated settlement.
  • Engaged by a telecommunications company to examine over $45 million of invoices, associated with the installation of a fiber-optic network throughout Phoenix, AZ, to estimate the magnitude of the over-billing, errors and irregularities in the contractor’s invoices. We reviewed over 6,000 invoices and over 2,000 job files. We performed a reconciliation of the disputed items and disclosed our findings in a formal report. After receipt of our report, the parties successfully negotiated a resolution to their billing dispute.
  • Worked on behalf of the engineering and construction program manager responsible for the design and construction of a major beverage concentrate production facility in Europe. Responsible for rebuttal and analysis of the claims submitted by the project owner for cost overruns, disruption costs, failure to meet specifications, etc. We prepared a claim rebuttal analysis and presented it at the mediation session. The claim was negotiated and resolved through the mediation.
  • Worked on behalf of the concrete subcontractor of an airport parking structure project, computed the direct and consequential damage suffered as a result of project interference, differing site conditions, scope changes, delays and disruption. Testified at a mediation session on the damages suffered by the subcontractor and assisted with the negotiation of the claim on behalf of the subcontractor to achieve a commercial settlement.
  • Engaged to perform the quantification of costs incurred by a bridge fabrication resulting from an error/omission by one of its lead engineers. The result of the error/omission was that an assembled fabricated bridge collapsed and as many as 60 other bridges may have the same design fault. The quantification was centered on the rectification costs to be incurred to re-fabricate and re-construct the potentially dangerous bridges located in numerous Third World countries.
  • Engaged to perform a project review and audit of the design and construction costs associated with the development of a $500 million floating production, storage and offloading vessel (FPSO) located in the North Sea. Led the project investigation, addressing the areas of contractor delay, error, omission and cost overrun in concert with an engineering consulting organization.
  • Prepared the cost claims for a prime contractor responsible for the civil construction activities on a major power plant development. Activities involved the review and extraction of project cost records to facilitate the computation of each claim element. Prepared claim narrative in support of claim quantification for submission and negotiation between the parties. Worked with other consultants involved with the reconstruction and evaluation of as-planned and as-built programs to evaluate float and level of disruption.