Below are a few real-life examples of where C&M has put their knowledge and expertise to work helping clients:
- We recently recovered $1.4M in field labor costs for a client. Several issues were found to help in this recovery. Two key areas were overstated labor burden costs for workers compensation insurance and state/federal unemployment costs and an incorrect calculation of state/federal unemployment costs as the contractor failed to annualize the costs for unemployment insurance and failed to adjust costs on an annual basis.
- During audit of an 300,000 square foot data center C&M discovered the mechanical sub contractor was charging apprentice labor at journeymen rates. As a result of this, discovery the owner received a credit of over $150K in labor costs.
- While reviewing the new 2012/2013 field labor rates for construction manager. C&M saved the owner save $3 to $5 per hour on overtime rates. Insurance and overhead costs had be incorrectly calculated by the Construction Manager.
- During the audit of a construction managers labor burden (taxes and insurance), identified 10% in hidden costs that were not allowed in the contract. As a result of the audit field labor rates were lowered by 10% which resulted in an estimated labor savings of $100K.
- While a mechanical sub contractor for a sports recreation project, C&M discovered that contractor-owned equipment rental costs were charged at the incorrect rate per the agreed upon contract terms as a result, our client received a credit for over $60K.
- C&M identified over $75K in costs savings after discovering equipment and other costs were also included in labor costs. Contractor was also billing equipment and other costs as direct project costs.
- C&M has assisted five clients in the editing their construction contracts (AIA 121,133, 201, 141, 141 exhibits A-C). Revisions have helped clients clearly define the “costs of the work” as well help reduce costs and risk on current and future projects. This has also resulted in decreased audit findings and costs.
- Based on recent completed audit, C&M helped a client win 100% of costs in dispute on an arbitration case, saving the client $350K.
- While reviewing the GMP for a major tunnel addition on a state project C&M discovered the construction manager doubled up costs for insurance, bond, and contingency. Based on this GMP was adjusted and lowered by $55K.
- While auditing consumable cost of construction manager, C&M discovered the construction manager had included a hidden markup of 20% for overhead and handling. The owner received a credit for $33K and saved another $50K in costs over the remainder of the project.