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The executive management of this EPC contractor desired to make its project financial forecasting more robust after suffering a number of project write-downs. After verifying that these write-downs were more than an accounting exercise, the EPC contractor wanted an independent third party to evaluate its bidding and execution practices, benchmark them against industry practices, and develop an integrated project risk management/project governance system that executive management could rely upon. Engaged to evaluate the written procedures and practices of each of the four divisions against industry practices. After the steps required to make those procedures and practices more robust were defined, the team worked with the client to revise the procedures and adjust its practices to make the output of the bidding and execution processes more reliable and transparent to management. This work also involved developing a client custom project governance program to identify high-risk bids and projects during execution and define the tools/staff needed to address these high-risk situations.

On behalf of an owner, performed an assessment of a Change Order Request for Labor Productivity Impacts and Extended General Conditions Cost. The assessment revealed that the contractor did not follow the MCAA instructions on the use of MCAA’s Labor Factors found in MCAA Management Methods Manual Bulletin No. PD2 (Revised 2011). The assessment also identified that the claim for General Conditions Cost was not supported by any schedule analysis and was a total cost claim even though there were numerous executed change orders, which included a 14 percent markup for supervision, quality control, and safety.