Builders’ Risk & Soft Costs

Matson, Driscoll & Damico’s forensic accounting teams deliver clear, concise measurement of builders’ risk claims and soft costs that can surface during a project’s construction phase.

Builders’ risk claims can include contractor negligence, human error, contract disputes, flood or fire, natural disasters or industrial accidents. Soft costs can include interest, taxes, advertising, architect fees, and legal and accounting fees.  

MD&D’s forensic accounting experts examine all relevant financial information, including:

• Proposed business plans and budgets
• Contracts and amendments
• Critical path charts, information and revisions
• Construction status reports and change orders at the time of loss
• Actual start-up operations for similar projects
• Budget and actual expenses for the affected location

MD&D’s forensic accounting teams also review direct and indirect labor when hard costs are involved, including:

• Fringes, materials and sub-contractor costs
• Reasonable and customary contractor overhead and profit rates
• Detailed descriptions of the tasks performed by the labor crew and verification of all claimed hours
• Confirmation that all pay rates, direct and indirect costs, overhead charges and profit rates meet construction contract

MD&D will often provide expert witness testimony for subrogation cases resulting from these claims.