NEW Webinar Series
Cost Plus with Guaranteed Maximum Price (GMP)
7 Major Considerations for Effective Cost Control and Audit
Date: TBD May or June
11:00 am - 12:00 pm CST
Cost $89 - Earn 1 CPE - Register Early - Space is Limited
Learning Objectives | Program Fee | Register | CPE | Instructor | Contact Us
Most Owner organizations are using cost plus fee with GMP construction contracts for their larger construction projects. This webinar will address seven important cost control challenges that Owners and their auditors should consider when cost plus fee construction contracts are used.
Universities, school districts, health care organizations, government organizations, manufacturing firms, retail organizations and real estate developers often use either Construction Manager at Risk (CMR) or Design-Build (D-B) project delivery methods. Both of these popular construction project delivery methods typically use cost plus fee with GMP construction contracts.
There are many ways to effectively control and audit the construction costs on these projects. However, there are also many ways for Owner organizations to end up spending significantly more on these projects than necessary.
Examples from our experiences will be used to illustrate the major learning points presented during this webinar.
- How to develop and administer an effective cost plus fee GMP contract
- Understanding the importance of due diligence pre-award review of “open book” contract negotiation situations
- Pitfalls to avoid when approving GMPs proposed by Contractors
- How to avoid making significant excessive payments to the contractor for self-performed work
- How to avoid being overcharged or overpaying excessive amounts for contractor labor
- Best practices for dealing with the procurement of significant subcontracts when normal competitive bidding does not occur is not possible
- Essential change order documentation and methods to effectively control the costs of proposed change orders
- Understanding the pitfalls of converting GMP contracts to un-auditable fixed price prime contracts or subcontracts
- Cost control problems associated with hiring the same contractor to perform cost plus contract work and lump sum contract work at the same time
- Understanding the potential for collusion between the prime contractor and subcontractors that results in significant excessive costs to the Owner
Who Should Attend
- Anyone responsible for controlling construction costs in their organization
- Anyone who has attended one of our previous construction related seminars:
- Effective Auditing of Construction Activity
- Controlling Construction Costs
- Construction Fraud: Detection, Prevention & Response
- Anyone responsible for managing construction activity
- Directors of Construction/Capital Projects
- Program/Project Managers
- Anyone responsible for investigating suspected fraud in construction activity
- Anyone experienced in construction contract administration and/or construction audit
- Certified Construction Auditors
- Certified Cost Control Professionals
- Certified Fraud Examiners
- Certified Internal Auditors
- Certified Public Accountants
- Chief Financial Officers or Controllers
Rich Townsend is CEO of the consulting firm R. L. Townsend & Associates, Inc., which provides construction audit and cost control consulting services for Owner organizations in the United States.
Mr. Townsend is a Certified Construction Auditor (CCA), a Certified Internal Auditor (CIA), and a Certified Public Accountant (CPA). He is a graduate of Waynesburg College (Waynesburg, Pennsylvania) where he obtained a Bachelor of Science Degree with a major in accounting.Rich Townsend is CEO of the consulting firm R. L. Townsend & Associates, Inc., which provides construction audit and cost control consulting services for Owner organizations in the United States.
For over 20 years, Mr. Townsend has been providing professional development training for Owner auditors and Owner construction management representatives for a wide variety of organizations and industries throughout the United States and Canada. His seminars entitled "Controlling Construction Costs" and "Effective Auditing of Construction Activity have been presented in affiliation with Courtenay Thompson & Associates.
Participants Earn 1.0 CPE Credit
- In order to be awarded the full credit, you must respond to 3 out of 4 polling questions asked during the program.
Field of Study: Auditing
Advanced Preparation: None
Program Level: Basic
Delivery Method: Group Internet Based
Webinar Fee: $89
Registration FEE may be paid by PayPal, MasterCard, Visa or American Express
Register by Telephone: Call Marie Jones at (254) 736-0309
Cancellation and Refund
Refunds and Cancellations: If you register for a webinar and are unable to attend, please notify us by email and we will apply your credit toward any future webinar. For more information regarding refund, concerns and/or program cancellation policies please contact Marie Jones by email email@example.com or call 254-736-0309.
All participants are eligible to receive up to 1 Continuing Education Credit (CPE) to fulfill professional accreditation requirements. In order to be awarded the full credit, you must respond to 3 out of 4 polling questions asked during the program
Field of Study: Auditing. Course Level: Basic. Group-Internet Based, no prerequisites or advanced preparation required. For information regarding CPE, complaint, or program cancellation, please contact our office at 214-361-8346.
The Construction Audit & Cost Control Institute is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Concerns regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.