In-House Seminar
"Controlling Construction Costs" - Course Outline
Introduction to Controlling Construction Costs - an Owner's Perspective
- Why are we here?
- Examples of what went wrong
Cost Control Objectives During Various Phases of a Construction Project
- Project planning phase
- Contract document development phase
- Bid/contract award phase
- Construction phase
- Contract closeout phase
A Multi-Step Approach to Effectively Controlling Construction Costs
Cost Control Roles & Responsibilities - The Owner's "Team"
- Project manager/purchasing authority
- Field engineer(s)
- Cost analyst/construction accountant
- Contract administrator
- Outside architect/engineer
- Construction auditor
Preventing and/or Detecting Typical Overcharges in Lump Sum Contracts
- Specified construction materials or products not installed
- Specified services not rendered
- Overstatement of change order proposals
- Overstatement of contractor claims
Preventing and/or Detecting Typical Overcharges in Cost Plus Contracts
- Payroll burden overcharges
- Labor hours and/or wage rates overstated
- Material overcharges
- Backcharges not handled properly
- Equipment rental overcharges
- Equipment purchase overcharges
- Insurance overcharges
- Overcharges by subcontractors
- Accounting errors, duplicate charges, etc.
Bid Document Format and Language to Enhance Cost Controls
- Non-collusive bidder certification
- Acknowledgment of owner's business ethics policy
- Value engineering provisions
- Overhead markups on changes
General Contract Language/Provisions to Enhance Cost Controls
- Why tailor your contract
- Definition of reimbursable costs
- Address overtime, delays and other impact costs
- Change order administration
Special Consideration for Time and Material Contracts
- Establishing proper rates for labor, equipment, etc.
- Obtaining adequate documentation on a timely basis
Special Considerations for Unit Price Contracts
- Adequate definition of how units will be measured
- Monitoring work in-progress/work in-place
- Accurately determining quantities
Using Computer Database Applications as Part of the Operational Control System for Cost Plus and/or Time and Material Contracts
Special Cost Control Considerations with Change Orders to Lump-Sum or Guaranteed-Maximum Contracts
- Field administration of changes
- Obtaining proper documentation
- Special contract provisions
- Monitoring change order work
- Analyzing/auditing change orders
Special Cost Control Considerations with Contractor "Claims"
- General claims
- Differing site condition claims
Course Offering Information
Course Description
