- Why Choose Us?
Our Value Proposition
CMP engages in construction cost review, audit analysis, and contract compliance activities on behalf of our Owner Clients and Stakeholders throughout the life cycle of a project. As part of the audit review process, we validate contract cost performance, work to mitigate Owner external (second and third) party risk, enhance processes and strengthen internal controls. Our methodologies are to assess project costs, identify value to help clients stay focused on successful project completion, and demonstrate to all parties a clear plan to optimize the Owner’s return on investment (ROI).
When advising Clients on large complex programs, we comprehensively examine the delivery model and the construction team’s compliance guidelines, processes, and procedures pursuant to contract documents. We diligently work to manage the review of specific internal processes and workflow to identify and/or establish applicable industry “Best Practices,” related to:
- Effective Project Controls for Certification of Cost
- Risk Management Strategies associated with selection of project delivery models
- Contracting Methods and Tracking/Reporting of Construction Cost
- Establish proper “Owner Right to Audit” contract language
- Strategies for Cost Avoidance and Cost Recovery
- Strategies for correcting nonconforming project team behavior
- Schedule Recovery and Delay Analysis
- Protocols for addressing and correcting areas of contract noncompliance
- Procedures for correcting nonconforming work product
Measurable Results
Industry Overview & Standards:
CMP provides services during each phase of the project. Throughout the pre-construction phase, we help analyze and fine tune the construction budget, as well as assist with strategies for evaluating delivery methods, project phasing, value engineering, pull-session planning, and establishing effective applicable audit contract terms and conditions to protect the financial interest of the Client. During construction, we serve as the advocate for the Client and assist with financial oversight. At closeout, we help the Client ascertain whether the contract requirements have been fulfilled.
The objective during each Client engagement is to effectively monitor and control the construction costs. This includes establishing and implementing procedures to protect and mitigate owner risk, work to reduce/eliminate contractor discretionary spending, controlling allowances, contingency spending, non-allowable cost in Change Orders, etc. Supporting the Clients program and protecting the interest of the project to the letter and spirit of the contract. CMP will work jointly with your team and provide only the required and effective assistance needed from the project inception through closeout by:
- Identifying areas of increased risk related to the project
- Verifying the accuracy of billings or charges and contract compliance
- Confirming funds are being used in the manner intended by management
- Reporting potential cost savings, cost avoidance and/or potential recovery
- Identifying areas for process improvement opportunities/eliminating inefficiencies
- Follow-up and resolve of outstanding/identified issues and reporting the status for corrective action
- Assisting with the effective project closeout of the program in a timely manner
Management Approach
Today, open communication and effective management of both field and office operations are the most important means to avoid costly disputes and litigation. Successful construction projects combine effective communication with sound management techniques.
There are a finite number of activities that must be addressed with some level of detail, to secure the success of a program. The size and complexity of the program will dictate the exact level of effort and cost for each required activity. Ignoring any part of the process leaves the project vulnerable to potential problems.
Through effective management techniques, the Owner can be assured that proper steps are taken to solve problems and mitigate claims, which translate into cost and schedule overruns, disputes, and/or costly litigation.
Construction audit activities and procedures extend beyond a cursory check of invoices, application for payment, change order proposals, etc., to ensure guidelines and specifications are followed during pre-construction, planning, execution of the construction work and project closeout reviews and reconciliations.
A fully integrated project controls audit system provides comprehensive structured reviews throughout the entire construction delivery process while focusing and aligning targeted metrics with project costs and objectives to ensure the Owners project risk is protected.
The construction audit and examination not only test the accuracy of CM/Contractor cost and other project expenditures incurred against the construction project, but it typically includes a review of processes used in project management and project cost/schedule controls, and a comparison of those processes to “Industry Best Practices.” These are essential project audit functions that largely determine project financial outcomes. The unique blended integration of these management activities will effectively and accurately monitor and control the construction cost performance at all levels.
This includes establishing and implementing procedures in concert with existing Owner project controls and contract document requirements to protect and mitigate risk, reduce/eliminate contractor discretionary spending, controlling allowances, contingency spends, non-allowable costs and mark-ups in change orders, etc., supporting the Owner’s program and protecting the interest of the project to the letter and spirit of the contract.
The CMP program METHODOLOGY requires a collaborative and partnered approach with the Owner’s project team to deliver project results that align with project objectives by:
- Implementing a Strategic and Partnering Attitude amongst all project team members
- Identifying key areas of increased risk in costs, variables in project scope and schedule
- Track and report cash flow trends and forecast related to labor, material, equipment, and subcontractor cost
- Recommend, quantify, and report potential areas designated as Cost Savings, Cost Avoidance, and/or Cost Recovery
- Identify critical areas for process and controls improvement. Including platforms to determine contractor entitlement spending and communicate opposition to such spending.
- Identifying areas of increased risk related to construction project delivery, phasing and defining substantial completion as applicable.
- Implementing graduating levels of the closeout processes and activities early in the pre-substantial completion project phase, including resolving all costs, change order, and scheduling/delivery disputes
