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Damages

Damages

Our team combines scheduling proficiency with financial expertise.

Because time and money underpin every construction project, CPMI combines scheduling proficiency with financial expertise to offer clients an integrated approach to damage assessment—one that accounting firms or engineering consultants, alone, simply cannot match. Our accountants and auditors have decades of experience evaluating construction costs, calculating affirmative damages, rebutting damages claims, and identifying fraud indicators.

Financial Evaluations

The following provides just a sample of the in-depth financial evaluations our interdisciplinary team is uniquely qualified to help you tackle.

  • Delay damages
    Project overhead costs and daily rate for delay, using a contractor’s accounting reports to identify time-driven (delay-impacted) costs
  • Productivity damages
    Attribution/tracking of direct labor costs and equipment as a result of disruption
  • Cost rate calculation for lost labor and equipment
    Evaluation of markups for indirects, equipment, and other markups on direct lost labor
  • Direct increases
    Cost overruns due to a variety of issues, such as:

    • Unnecessary subcontracting
    • Additional security
    • Additional scope requirements
  • Betterments
    Costs associated with procuring a new or improved design

Services & Activities

CPMI handles a wide range of complex damage-related accounting-specific activities, including the following situations/demands:

  • Lost profits
  • Construction audits
    GMP determinations
  • Costing (vs. pricing) updates
    Replacing actual indirect rates, e.g., overhead, general and administrative (G&A) costs
  • False Claims Act allegations
    • Duplicative billings
    • Overbillings
    • Subcontractor markups
    • Compliance, e.g., OSHA reporting, Buy America Act, labor classifications, certified payrolls
  • Bid protests
    • Price comparisons
    • Price realism
  • Identification of weaknesses in a contractor’s internal controls
  • Determination of related parties
  • Change-order pricing
    • Direct vs. indirect labor categories
    • Application of markups
    • Verification of quantities
    • Evaluation of change orders’ impacts on the public-private partnership (P3) economic model
  • Developer returns-related claims
  • Class-action determinations and distributions
    • Statistical sampling
    • Tracking payments and receipts
    • Periodic reporting
  • Price escalation claims
    • Material/supplies
    • Labor
  • Alternate dispute resolution (ADR) support
    Real-time claim repricing