Yes. While the possibility of completely eliminating problems is unrealistic, we believe proactive management can significantly reduce the likelihood that overcharges, over billings or other material errors will occur. At the most elementary level, we believe management must dedicate resources early on in the process. Specific strategies should be aimed, first and foremost, at the procurement process, which we believe is the single greatest risk to an organization. Furthermore, it is important to understand that procurement processes involve multiple facets, multiple firms and occur over a period of time. Separate consideration must be given for the principal designer (architect/engineer); construction contractor (general contractor/construction manager) and trade contractors (subcontractors and suppliers). The key elements of the procurement process must also be effectively addressed. These include establishment of selection criteria, selection and refinement of the procurement method, selection of contract type and development of specific contract terms. Perhaps most importantly, an owner must recognize and understand the risk of failing to participate in the procurement process of the contractor’s bidding and award of subcontracts.

The second strategy to minimize or reduce the likelihood of problems occurring is the establishment of effective contract administration practices. Failing to fully embrace this element of overall project control can undermine the effort put into the procurement process, no matter how thorough or effective it may be. Our belief in these core fundamental principals are so strong that we believe we can provide far greater value to an organization by being involved at the beginning of a project rather than through a post-project audit. This does not suggest that audits are not worthwhile endeavors (as we believe they are). Rather, we believe the effort up front pays far greater dividends. Successful projects are often characterized by having skilled personnel who are both active and effective in these upfront areas. Unfortunately, our experience in performing audits has too often produced audit results that directly point toward ineffective management practices early on in the process.