Thursday, February 21, 2013

February Presentation: Profit Strategies on Cost Plus Contracts

Join us for our February Presentation on February 26, 2013, Noon Eastern Time. 

Joel Rhiner sets the table: 
Construction managers operate in a fragmented marketplace with numerous competitors, none of which possesses a significant share of the overall market.  Historically, the high level of competition has created a low margin environment for construction management firms.  Recently, construction managers have contracted on projects with stated fees that are even lower than historical standards.  Is this just a product of a weakened economy creating an even more competitive environment; or have contractors developed additional ways to create margins outside of the traditional stated fee?  Several different ways that contractors can bill for “costs” that enhance returns beyond the stated fee will be discussed.  A focus on the different contractual clauses that may either allow or disallow these costs will provide attorneys a better understanding on how construction managers are enhancing their returns.  In addition, an analysis of the allowable cost language within the contract will provide insight into the best ways to protect their client’s interests when drafting contracts.
John Bailey of the Veritas Advisory Group in Dallas will be our presenter. 

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