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Recoveries: Manufacturing Plant

manufacturing plantThe project was a $65 million Cost Plus project.

Audit Scope

Review and analyze construction contracts with the Construction Manager and mechanical subcontractor; thoroughly review payment applications and cost documentation at KBC offices and the office of the plumbing/mechanical subcontractor.

 

 

Major over-billed costs were:
Unsupported mechanical/control equipment   $103,005.00
Apprentices billed at journeyman rates  $84,226.00
Unsupported/undocumented labor$60,854.00

KBC and our client performed negotiations to recover $394,535.