EARLY BIRD DISCOUNT: $100 OFF REGISTRATION Fee = $1,095.00 Only until January 31, 2014
This two-day seminar provides auditors with insight on how to partner with their management team to conduct effective audits of their organization's construction activity.
Specific "how-to" construction audit techniques and other industry specific detailed information will be discussed to enhance the attendees' abilities to identify and develop potential cost avoidance and/or cost recovery opportunities. It will also provide auditors with specific knowledge to help them identify opportunities for key process improvements related to construction procurement and contract administration.
Who can benefit from this learning experience:
Owner organization representatives who are involved with auditing or administering construction activity including:
- Owner's construction audit representatives (internal audit and/or external consultants)
- Owner's construction management executives, project managers, administrators, procurement representatives and/or legal representatives
Types of Contracts Covered:
The course will emphasize effective construction audit strategies and construction cost control techniques for projects involving the use of the following types of construction contracts:
- Cost plus FEE - Construction Manager at Risk- Guaranteed Maximum Price (GMP) contracts,
- Cost plus FEE - Design-Build GMP contracts
- Cost plus FEE contracts with General Contractors (with or without a GMP)
- Cost Plus FEE contracts with major subcontractors/trade subcontracts (with or without a GMP)
- Lump sum and/or Unit price trade subcontracts or prime construction contracts
Owner's Construction Auditors will learn specific "how to" techniques for conducting effective audits of their organization's construction activity.
- Issues to consider to help your organization avoid making costly mistakes when entering into construction contract agreements
- Key steps to ensuring the best value is received when the CM/GC contracts with subcontractors
- Critical process to ensure subcontractor change orders are fairly priced
- Process to control costs related to materials purchased by the Contractor
- How to structure your contract to ensure you do not overpay for contractor owned equipment
- Possible overcharges for third party equipment to watch out for
- How to avoid making excessive payments for subguard and/or contractor controlled insurance programs
- Methods to effectively minimize the loopholes in contracts that create opportunity for contractors to realize excessive hidden profits
- Management/construction audit partnering strategies to ensure construction cost controls are working as anticipated to benefit the project
- Owner's Project Managers will learn specific key control points that will increase their ability to manage the costs of their construction projects
- Owner's Project Managers will learn how to effectively partner their construction auditors to more effectively control the costs of their construction projects
Learn The Pros and Cons of:
- Lump sum pre-construction services versus cost reimbursable pre-construction services
- Pre-established labor billing rates versus reimbursement of actual wages and verifiable labor burden
- Lump sum general conditions versus cost reimbursable general conditions
- Lump sum self-performed contractor work versus cost plus fee with GMP for self-performed contractor work
- Converting GMP contracts to lump sum contracts
- Supported payment applications versus percentage of completion payment applications
- Pre-agreed labor burden percentages versus reimbursement for actual defined labor burden costs
- Bonding both the prime contractor and the subcontractors
- Subcontractor default insurance (subguard) versus conventional performance and payment bonds
- Savings Sharing clauses versus no savings sharing clauses
- Worker's Compensation and General Liability Insurance - Conventional insurance versus Contractor Controlled Insurance Programs (CCIP)
- Worker's Compensation and General Liability Insurance - Conventional insurance versus Owner Controlled Insurance Programs (OCIP)
- Typical contractor fees for cost plus fee with GMP construction manager/general contractor projects of various sizes
- Whether or not to reimburse for general liability insurance or have it covered by Fee
- Typical charges for general liability insurance
- Typical charges for Subcontractor Default Insurance (subguard)
- Typical charges for Contractor Controlled Insurance Programs (CCIP)
- Typical charges for worker's compensation when the contractor is self-insured and/or uses high deductibles
- Change order markup percentages allowed on subcontractor self-performed work and work performed by sub-subcontractors
- Actual wire and conduit costs versus published "book prices"
Introduction to Effective Auditing of Construction Activity
- Audit objectives related to controlling construction costs
- Project team roles and responsibilities
- Delivery systems - fast track, design build, conventional
- Contract procurement methods, types, and phases
Cost Plus and Time and Material Contracts - Typical Overcharges
- Design contract billings for time and reimbursables
- Billings for personal computer and/or mainframe computer time
- Construction contractor and/or construction manager billings for labor and labor burden
- Billings for contractor-owned equipment, third-party equipment rental, expendable tools, equipment and consumables, and material used during construction
- Transactions dealing with subcontractors
Auditing Construction Change Orders
- Typical overcharges in lump sum change orders
- Electrical change order - discussion exercise
- Change order labor and labor burden pricing
Auditing Lump Sum or Unit Price Contracts
- Quality and scope of work overcharges
- Substitution of materials or methods
- Not performing required services
- Not installing proper quantities
- Special types of lump sum contract overcharge situations
- Adjusting allowances
- Required bonds and insurance
- Improper charges for sales tax
- Special unit price overcharge situations
- Excessive quantities billed
- Improper measurement method used
- Inaccurate measurements
- Billings for excessive quantities actually performed
$100 OFF - DISCOUNTED REGISTRATION Fee = $1,095 Only until January 31, 2014
REGULAR SEMINAR REGISTRATION Fee = $1,195 (approx. $75 per CPE hour)
Registration FEE is payable to:
Construction Audit & Cost Control Institute, Inc.
3941 Legacy Drive, Suite 204 #218A, Plano, TX 75023.
Registration FEE may be paid by check, MasterCard, Visa or American Express.
Program fee includes instruction, all program materials, lunch each day and refreshment breaks
Register On-Line: Click here to register on-line
Register by Fax or Mail: Click here to download printable registration form.
Register by Telephone: Call Lynn Runyon at Courtenay Thompson & Associates (214) 361-8346
Tuesday: 8:30 am - 5:00 pm
Wednesday: 8:30 am - 5:00 pm
Cancellation and Refund:
Enrollment is limited to assure maximum opportunity for participation and exchange of ideas. Substitutes will be accepted until the program starts. Cancellations will be accepted up to 14 calendar days prior to program start without incurring a $95 late cancellation fee. Full fee is charged for failure to attend when enrollment has not been canceled as specified. Contact Lynn Runyon at Courtenay Thompson & Associates, 214-361-8346 or firstname.lastname@example.org.
All participants are eligible to receive up to 16 Continuing Education Credits (CPE’s) to fulfill professional accreditation requirements. Field of Study: Auditing. Course Level: Basic. Group-live, lecture-style seminar; no prerequisites or advanced preparation required. For information regarding CPE, complaint, or program cancellation, please contact our office at 214-361-8346.
Courtenay Thompson & Associates 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. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org
We have blocked a limited number of rooms at the Palazzo Resort Hotel that will be available at $154.00 plus tax per night for the evenings of 4-14 and 4-15-2013. NOTE: Our group rate is only guaranteed until March 15, 2014.
Call 1-866-263-3001 to make your reservation. Mention the "Construction Audit and Cost Control Institute Seminar" to receive the group rate.
The seminar classes will be held at the Palazzo Resort Hotel:
3325 Las Vegas Boulevard
South, Las Vegas, Nevada, 89109
Click Here for Directions
Rich Townsend is a principal of the consulting firm R. L. Townsend & Associates, Inc., which provides construction audit and construction cost control consulting services to Owners.
Since 1985, Mr. Townsend has been the instructor for the seminar entitled "Controlling Construction Costs" and "Effective Auditing of Construction Activity" sponsored by Courtenay Thompson & Associates. He has also instructed in-house seminars related to construction contract audit and construction cost control for a wide variety of organizations and industries throughout the United States and Canada.
Prior to starting his consulting firm, Rich spent 13 years with the auditing department of a major retail corporation. During his internal auditing career (1971-1984), he served in several staff and audit management positions with a specialization in audits of construction contract activity.
Mr. Townsend is a Certified Internal Auditor (CIA), a Certified Public Accountant (CPA), and Certified Construction Auditor (CCA). He currently serves on the advisory board for The National Association of Construction Auditors.
He is a graduate of Waynesburg College (Waynesburg, Pennsylvania) where he obtained a Bachelor of Science Degree with a major in accounting.
R. L. Townsend & Associates, Inc. and Courtenay Thompson & Associates have jointly developed our professional development training seminars related to construction cost control and audit.