Outline | Fee | CPE | Accommodations | Venue | Instructors | Brochure
$150 Early Registration Discount Ends January 4, 2025 = $1,245 – REGISTER
Managing construction activity effectively for large complex projects requires experience and special knowledge. Attendees will learn some of the most important ways to improve their construction contracting methodologies to mitigate some of the significant mistakes Owner organizations often make which can cost them millions of dollars in excess construction costs. Earn 16 CPE
Who Should Attend
- Owner’s construction management executives
- Owner project managers
- Owner contract administrators
- Owner construction contract procurement representatives
- Owner legal representatives
- Owner’s construction audit representatives (internal audit and/or external consultants)
- Third-party program management representatives
Types of Contracts Covered
The course will emphasize effective construction audit and 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
Attendees Will Learn
- How to avoid making costly mistakes when entering into construction contract agreements
- Key steps to help ensure 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 limit exposure to potential excessive billings for contractor-owned equipment
- Possible overcharges for third party equipment to watch out for
- How to avoid making excessive payments for Subguard® (Subcontractor Default Insurance) and/or Contractor Controlled Insurance Programs (CCIP)
- Methods to effectively minimize the loopholes in contracts that create opportunities 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 problems to watch out for when managing their projects to avoid significant overpayments to their construction contractors
- Owner’s Project Managers will learn how to effectively partner their construction auditors to prevent significant overcharges and/or overpayments going undetected
Learn The Pros and Cons of
- Cost reimbursable pre-construction services versus Lump Sum payments for 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 aka 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)
Other Learning Points To Be Covered
- 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 material pricing and labor analysis for trade subcontract change orders
Course Outline
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
Program Fee
$150 Early Registration Discount Until January 4, 2025 = $1,245 – REGISTER
$150 Discount – Registrations received between 12-5-2024 and ending 1-4-2025 = $1,245
$100 Discount – Registrations received between 1-5-2025 and ending 2-4-2025 = $1,295
After 2-4-2025: REGULAR SEMINAR REGISTRATION Fee = $1,395
Registration FEE may be paid by credit card.
Program fee includes instruction, all program materials, breakfast and lunch and refreshment breaks each day.
Program Schedule
Tuesday, March 4, 2025: 8:30 am to 4:30 pm
Wednesday, March 5, 2025: 8:30 am to 4:30 pm
- Breakfast: A full breakfast will be available for our group from 7:30 am to 8:25 a.m. each day.
- Lunch: We will be providing lunch for our group starting around noon and ending at approximately 12:50 pm.
- Recommended dress is your choice of “Business Casual.”
Cancellation and Refund
If for any reason you cannot attend a seminar you registered for, please contact Marie Jones at 254-736-0309 or email marie.jones@caacci.org. If you notify us of your need before the scheduled event, we will be able to issue a refund or a credit, or transfer your paid registration to a future similar event.
CPE
All participants are eligible to receive up to 16 Continuing Education Credits (CPE’s) to fulfill professional accreditation requirements. Participants will receive 1 CPE credit for every 50 minutes in attendance. Field of Study: Finance – Technical. Course Level: Basic. Group-live, lecture-style seminar; no prerequisites or advanced preparation required. For information regarding CPE, complaint, or program cancellation, please contact Marie Jones at 254-736-0309 or Rich Townsend at 972-679-6762 or email info@caacci.org.
Construction Audit & Cost Control Institute (CAACCI) 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.nasbaregistry.org
Accommodations: Bellagio – Las Vegas
Home of the magnificent Fountains of Bellagio and the Conservatory & Botanical Gardens. Offers 19 world-class dining options from casual to contemporary to AAA Five-Diamond, 9 of which have an outdoor patio overlooking the Fountains of Bellagio.
For the nights of March 3, 4 & 5, we have reserved a block of rooms for our seminar attendees at the special rate of $189/night for March 3 & 4 and $209/night for March 5 (plus a $45 daily resort fee per night). Most of our attendees stay at the hotel for two nights (March 3 & 4, 2025) and a few opt to stay over a third night.
NOTE: This rate expires on February 10, 2025.
Reservations for our group block must be made using this special link:
Reserve Your Room At Bellagio – CAACCI Group Rate
Venue: Bellagio
Las Vegas Blvd South
Las Vegas, NV 89109 Map Link
702-693-7111
Instructors
Rich Townsend is Co-Owner of the consulting firm R. L. Townsend & Associates, LLC. The firm provides construction audit and construction cost control advisory services to a wide variety of organizations throughout the United States.
Mr. Townsend is a Certified Internal Auditor (CIA), a Certified Public Accountant (CPA), and a Certified Construction Auditor (CCA). He currently serves on the advisory board for The National Association of Construction Auditors. He has been providing professional development training seminars through the Construction Audit & Cost Control Institute, Inc. since 2008.
He is a graduate of Waynesburg University (Waynesburg, Pennsylvania) where he obtained a Bachelor of Science Degree with a major in accounting.
Ashley Humphries is a Senior Construction Auditor at R. L. Townsend & Associates, LLC. She has worked for the firm for the last nine years and she has extensive experience working on construction audits of major construction projects for private and public universities, university healthcare organizations, public school districts, industrial, and real estate development.
She has been part of our Construction Audit & Cost Control Institute instructor team for the last several years. She has also participated in presentations at the National Association of Construction Auditors annual conferences.
Ashley is a Certified Internal Auditor (CIA) and a Certified Construction Auditor (CCA). She is a graduate of the University of North Texas (Denton, Texas).
Register:
$150 Early Registration Discount Until January 4, 2025 = $1,245
Regular Registration Fee = $1,395
To Register by Telephone: Call Marie Jones at (254) 736-0309
- Your registration confirmation will be emailed to you after you register. If you do not see it in your Inbox, check your “Other” folders and add us to your email service list of “Safe Senders” to receive future emails containing seminar details.
- To Pay by Check: Select the option to “pay later” and we will email an electronic invoice.
- To Register a Group: Select the quantity in the form below.
- International Payments: must be made by credit card in advance of this seminar.
- Need Assistance with Registration: Contact Marie Jones through the chat box, call (254) 736-0309 or email: marie.jones@caacci.org
Have Questions about Seminar Content? Contact Ashley Humphries at (214) 551-4942 ashley.humphries@rltownsend.com or Rich Townsend (972) 679-6762 rltownsend@rltownsend.com
Click here for a copy of a W-9 for Construction Audit & Cost Control Institute, Inc.