Skip to Navigation
Skip to Main content
OIG Home
OIG Home


Skip SHARE THIS PAGE section Skip STAY CONNECTED section

Board Report: 2014-AE-B-007 March 31, 2014

Opportunities Exist for the Board to Improve Recordkeeping, Cost Estimation, and Cost Management Processes for the Martin Building Construction and Renovation Project

available formats

Summary of Recommendations

Rec. no. Report page no. Recommendation Responsible office
1 9 Designate responsible individuals to maintain records in support of the construction cost estimates for the Martin Building project, including any records needed to ensure compliance with the Board’s Records Policy and Procedures Manual. Management Division
2 14

Upon receipt of future estimates from the construction administrator and Karn Charuhas Chapman & Twohey, evaluate these estimates to ensure that

    1. all program requirements are included.
    2. redundant costs are not included.
    3. escalation is calculated to an appropriate point using an agreed-upon index.
    4. contingencies, mark-ups, and escalations are applied in conformance with industry standards using agreed-upon percentages.
    5. estimates are in Construction Specifications Institute format as required by the contract.
Management Division
3 14 Develop and implement written policies and procedures on developing construction cost estimates that will require any future building projects undertaken by the Board to comply with industry procedures and standards for developing cost estimates. Management Division
4 18 Direct the Martin Building project team to establish a stated cost limitation with Karn Charuhas Chapman & Twohey as quickly as practicable. Management Division
5 18 Once the stated cost limitation has been established, advise the Committee on Board Affairs, the Executive Oversight Group, and senior management as appropriate if future estimates exceed this limit. Management Division
6 18 Direct the Martin Building project team to require Karn Charuhas Chapman & Twohey to submit a list of cost- saving items with the remainder of its design submissions. Management Division