Provide Contract Negotiations
Objective: Assist in negotiations with contractors and
in writing contracts (i.e. specific definitions of reimbursable costs,
processing contract changes, etc.) to avoid subsequent misinterpretations
of contract language.
Review General Contractor's Guaranteed Maximum Estimate
Objective: Ensure the Owner is aware of the validity
of the items included in the guaranteed maximum price. In a review of
this nature, we often discover items increasing the contractor's profit
beyond that allowed by the contract (i.e. profit on alternate pricing,
undisclosed contingencies, etc.). In addition, audits of the general contractor's
proposed labor burden rates and insurance costs are performed to determine
the validity of the estimated amounts and initial cost verification.
Review General Contractor's Administrative and Accounting Controls
Objective: Determine if the contractor's administrative
and accounting procedures are adequate to meet the documentation and reporting
needs of the Owner. This is especially important when using a contractor
for the first time. This review has a beneficial psychological effect
on contractor personnel, as they are immediately aware that the information
they are generating will be audited.