R. L. Townsend & Associates, LLC
Knowledge | Perspective | Partnership
We offer this service to provide Owners with valuable input regarding their construction contracting strategy before they solicit proposals from their prospective contractors.
This construction cost control activity is intended to be proactive and is aimed at assisting Owners in the development of their construction contracting best practicies.
Perhaps the most effective manner of controlling construction costs is ensuring you have a well-balanced program of contract administration internal controls which help prevent overpayments from being made and help identify potential overcharges.
We realize that a smooth paperwork flow for processing payment applications and change orders is critical, and Owners should not be burdened with unnecessary approval procedures. Our goal is to identify only those control enhancements which will yield the highest return on investment of time on the part of your representatives.
We continually work with our customers to assist them in the process of enhancing the effectiveness of the contract language in their construction and engineering agreements.
Our goal is to provide high quality, cost effective construction cost control and construction project related contract compliance cost verification services for our Owner customers. Our consulting practice includes pre-contract advisory services, on-going project cost control and related construction cost verification services, and comprehensive construction contract close-out cost control reviews.
Contract Compliance Cost Verification Reviews
Whether you are using a cost plus fee construction contract or a lump sum/fixed price construction contract, there are numerous ways you can overpay or otherwise be overcharged by your contractor.
Most overcharges are the result of misunderstandings, oversights, or misinterpretations. This is usually due to the significant number of details that are involved in properly managing and administering a construction project.
A contract compliance cost verification review typically identifies potential overcharges, opportunities for cost avoidance, and/or cost recoveries.
The preconstruction phase of a project includes all of the preparatory activities outside of the design process review that must occur before construction begins.
During this phase of the project, we review the presconstruction, design, or construction agreements for contract compliance.
During the construction phase, if the compensation for preconstruction was a lump sum fee, we review construction phase labor charges to determine whether or not any preconstruction services labor that should have been charged to the lump sum was incorrectly charged to construction phase labor.
Knowing exactly what and how much you are being billed for construction is the important first step in determining whether or not you are being overcharged. Contractors' applications for payment to the Owner are often complex. Tracking and analyzing those costs and understanding their relationship with the contract documents can be a very demanding job.
R. L. Townsend & Associates can perform these cost monitoring tasks, allowing you more time to focus on other important issues without being burdened with the detailed review of excessive amounts of paperwork.
RFP & Contract Review
Review of RFP & Cost Plus Contract prior to being issued for prime contractor proposals. Recommendations to improve the language and process are made which results in the following benefits:
Continuity of language
Clarification of language
Addition of Best Practices language & process
Subcontract Bid Reviews
Review of the Bid Packages for continuity & reasonableness. Once bids are received and a recommendation is made by the contractor, the results are reviewed for compliance with the contract terms.
The GMP is reviewed for reasonableness & compliance with the contract terms. In many cases, the GMP includes terms which may modify the contract terms resulting in excess cost to the owner..