GMP Contract Audits

• What’s covered by the guaranteed maximum price, and what’s not?
• Do these costs fall within the scope of that “exception” or “clarification”?
• What is the “baseline scope” against which changes are measured?
• Are those costs properly charged to general conditions, or should they be part of the reimbursable cost of the work?
• What savings flow into the contingency, and what costs are properly reimbursed out the contingency?
• If the CM/GC self-performed work on a lump sum basis, were self-performance costs properly segregated from general conditions costs?
• Were staff costs to be paid on a cost-reimbursable basis or at agreed-upon rates?
• Was overtime billed for exempt employees who are not paid overtime?

These are just a few of the questions that can come up in a GMP close-out audit. Figuring out the right answers to these questions has little to do with accounting practices. Rather, they require a depth of construction industry knowledge and years of hands-on experience with, and understanding of, how GMP and cost-based contracts work.

We have that knowledge, experience, and expertise and are prepared to help you work your way to the appropriate close-out of your contract.

TRAUNER can also bring that knowledge and experience to you and your project upfront, by equipping you with the proper management tools, helping you develop the proper management skills, and training your administrative staff to address issues appropriately.

Performance Audits

TRAUNER performance audits are a fresh set of eyes on your program. We’ll perform an objective, independent analysis of the practices and procedures related to the management of your construction projects. That new perspective can lead to substantial improvements, particularly related to cost, time management, and the administration of change orders.

What does TRAUNER bring to the table? Experience and expertise. Not only are we seasoned construction consulting professionals, we also draw upon our wealth of academic research and training in contract administration and construction management best practices. We are widely regarded as leaders in the field, teaching and implementing best practices to our clients and, through seminars, to thousands of other construction professionals around the world.

What we won’t bring to the table are stock solutions. TRAUNER understands the uniqueness of every project and program, and the dangers inherent in recommending generic solutions to complex problems. Our company is founded on the careful and thorough study of issues. We recommend creative, yet practical, solutions that can be implemented by real people in real organizations.