The Construction Audit and Cost Control Institute Offers Webinar on Tuesday, June 13

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The webinar, "Cost Plus with Guaranteed Maximum Price (GMP) Construction Contracts, 7 Major Considerations for Effective Cost Control and Audit" will be held Tuesday, June 13 at 11:00 am CDT. Rich Townsend will share his experience with webinar attendees.

Webinar: Cost Plus with Guaranteed Maximum Price (GMP) Construction Contracts - 7 Major Considerations for Effective Cost Control and Audit

Tuesday, June 13 at 11:00 am CDT

Many 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.  

Learning Objectives:   

  • 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.

Attendees can earn 1 Continuing Professional Education (CPE) Credit

Click here for more details and registration information.

About the Presenter
Rich Townsend is CEO of the consulting firm R. L. Townsend & Associates, LLC, 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.

All participants are eligible to receive up to 1 Continuing Education Credit (CPE).
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.

The Construction Audit and Cost Control Institute, Inc. (CAACCI) of Dallas, Texas was created in 2008 as a resource to share information and solutions for today’s challenges in construction auditing and construction cost control. CAACCI members include project management and construction audit representatives from a wide range of private and public organizations. Visit our web site to register for any seminar or webinar http://www.caacci.org

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