Markups on general conditions, limits on contractors’ fees, improper design billings, and failures to bid are just a few examples of the issues that can be identified in a construction audit. Chelepis has recovered millions of dollars for our clients by identifying issues like these.
Large corporations typically utilize national general contractors to perform project management, tenant improvements and new construction on a regional or nationwide scale. The more extensive the scope of work, and the more subcontractors are utilized, the greater the risk that general contractors will mismanage the execution of the project and issue incorrect bills. A construction audit will give you assurance that your general contractor is complying with the negotiated terms of your Master Service Agreement (“MSA”).
After completing a thorough review of the MSA, Chelepis will proceed with its comprehensive construction audit. This process includes obtaining all relative worksheets, schedules, and payable reports utilized by the general contractor to understand the details of their workflows, processes, and client billings.
We’ll then analyze the data provided to identify the discrepancies that exist. The construction audit results in a report that lists the processes and charges made by the general contractor that don’t comply with the executed MSA. Each discrepancy is reported separately so it can be addressed on its own merits and with the understanding of its financial impact.
Chelepis can manage the negotiation process with your general contractor and any other related parties to reach settlement. Our success at settling claims comes from the experience and expertise of our team. The Chelepis approach is a complete process managed from beginning to end by an experienced staff that has audited millions of square feet of leased space throughout the country.
A client requested a construction audit of a general contractor’s national
program and billing practices. The audit revealed the general contractor
billed the client for self-performed... Read more