At-A-Glance: Contract Compliance Audit and Improvements Streamline $2.46B of Auditable Billings
A global retailer needed to optimize contract compliance across multiple fulfillment center construction projects spanning diverse contract structures – from Cost Plus GMAX to T&M agreements. PRGX’s Contract Management Services delivered significant recoveries through comprehensive audits while strengthening future contract governance.
$2.46B
Auditable Billings
$6.08M
Actual Recoveries Realized
$1M+
Preventative Cost Mitigation
Challenge: Construction Project Complexity Brought Risks of Overpayment and Contract Adherence
Construction projects are fraught with challenges of meeting timelines, staying within budgets, and producing quality results. The global retailer required 19 audits across 2.46B auditable billings that included completed and in-flight projects. As they were building out a fulfillment center program they had to coordinate these various elements.
- Projects were both Partial Owner/Tenant Funded and Developer/Landlord-Controlled Projects
- Contracts included Developers, Architects, General Contractors, and Subcontractors
- Terms spanned from Cost Plus GMAX Construction Contracts with Lump Sum Subcontracts to Soft Costs with T&M and Cost-Reimbursable contracts
Solution: Contract Management Services Delivered Express ROI with $7.08M in Savings
The PRGX Contract Management services team, driven by the AI-powered Contracts Insights engine, conducted a Contract Compliance Audit resulting in immediate and future savings of .28% of project costs.
A professional review of contract details can identify root causes of non-compliance, drive cash recoveries, and lay the groundwork for process improvement.
Overbilling Breakdowns Identified:
- Soft costs
- Cost of work (Trades & general conditions)
- Insurance
- Fees
Key Learnings:
Contract Compliance Audit
- Identified non-compliance and root causes
- Facilitated recovery of overpayments and recommended governance improvements
Improved Contracts
- Collaborated with Legal in re-writing of the Development Agreement template
Educated Owner Project Managers
- Presented key findings and recommended preventative actions
Streamline Your Construction Projects with PRGX Contract Management
The PRGX Contract Management team is ready to help you simplify the most complex construction projects by applying their five decades of experience and AI-powered technology. Just in the past 3 years, PRGX has audited more than 200 projects and $27 billion in construction costs with a 2.5% to 1% average savings. Chat with our team of experts about your unique goals and or watch a demo to see our solutions in action.
We Built the Blueprint
PRGX has deep expertise in construction audits, saving our customers .25-1% of their project costs on average.
