Procedures

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With minimal interruption to our client’s business operations, we will accumulate complete construction blueprints, specifications, general contractor contract documentation and payment requests, subcontractor payment requests, purchase orders, change orders, and all other necessary cost records for the project. We will then schedule a site visit to gain a better perspective of the purpose of the property as well as the use of the specific assets.

Our methodology follows professional engineering and cost-estimating procedures. Assets are identified based on consideration of the function within the project.  Whenever possible, we use actual invoiced costs for the assets. When actual costs are not available, engineering take-offs of labor and materials pertaining to individual assets are developed from the blueprints, specifications, and other contract information. Labor and material prices for which no specific price can be identified from contract documents are estimated using nationally recognized construction cost estimating manuals.

The indirect project costs (such as architectural fees and permits) obtained from the contract records are then allocated to the direct project costs. All indirect project costs are carefully scrutinized for proper allocation and capitalization.

The results of our analysis will then be documented in a highly detailed and supportable deliverable constituting a “quality” study as defined in the IRS Cost Segregation Audit Techniques Guide.