Post-Loss Reconstruction Advisory Services: Catastrophic Events
Published: 22-Aug- 2011 | Product Category: Property Insurance
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Catastrophic events such as earthquakes, hurricanes, and tsunamis can result in the tragic loss of lives and massive devastation to businesses, communities, and critical infrastructure. Damages can be in the billions of dollars and the aftermath presents unparalleled challenges for recovery, many of which will materialize in the reconstruction phase.
Under trying conditions, business owners will make critical decisions about what and how to rebuild. They must identify and procure scarce building resources at escalating prices.
Most importantly, they must decide how to manage the entire cost and expediency of the process in an environment inherent with high risks of fraud, waste, and abuse. Marsh Risk Consulting’s (MRC) Construction Consulting Practice offers specialized reconstruction project management solutions following catastrophic events. Our multidisciplinary teams provide construction project planning, oversight, and financial recovery support to help clients return to business.
Our customized reconstruction solutions are based on years of experience and best practices, enabling organizations to prioritize decisions and action plans against the needs of the business following a catastrophe. Our Construction Consulting Practice experts include project and program managers; engineers experienced, educated, and/or licensed in civil, structural, mechanical, electrical, architectural, chemical, soils, and petroleum disciplines; construction accountants; and legal and contract specialists. We offer reconstruction leadership and other resources to help you focus your attention on your business and achieve a timely recovery.
Reconstruction Project Consulting
MRC assists organizations through the evaluations, decisions, risk management, and recovery efforts needed to rebuild what was lost by:
- developing targeted contracting approaches to expedite reconstruction;
- evaluating the available project delivery methods and recommending the approach best aligned with owners’ goals and business needs;
- developing the reconstruction strategy through a systematic process that identifies, refines, and prioritizes the goals that projects must achieve to be successful;
- implementing risk mitigation measures in areas of cost, schedule, scope, quality, and compliance;
- enhancing the effectiveness of the reconstruction project plan to attain goals by implementing procedures such as assessing the bid solicitation and award process against the technical requirements of the work;
- implementing greater governance, transparency, and control for owner executives; and
- developing schedules, facilitating procurement, and validating cost estimates.
Reconstruction Audit and Monitoring
Project Restoring operations following a catastrophe includes expedited construction. The increased demand for contractors can result in time and materials contracts where the risk of cost overruns shifts to the owner. In this environment, MRC can:
- Audit contractor performance and costs for risks such as payment duplications and overbillings, poor workmanship, incomplete scope, inexcusable delays, and other negative outcomes;
- Verify the accuracy and reasonableness of costs, completion of scope, validity of construction quality and code compliance, and adequacy in project documentation needed to process contractor payments or facilitate owner reimbursement from insurance or other parties;
- Provide project scheduling oversight; and
- Provide regular management progress reporting formatted to support third-party or insurance recovery.
Detection and Prevention of Waste, Abuse, and Fraud in Reconstruction
Whether in conjunction with the services above or as a standalone program, our construction professionals understand the prevalence, following a catastrophe, of cost duplication, price inflation, fictitious transactions, and theft of materials, among other risks. Our construction fraud experts work in concert with our Forensic Accounting and Claims Services (FACS) professionals to implement procedures that assist with:
- fraud deterrence and prevention;
- early fraud detection; and
- forensic investigations and recovery
Third-Party Financial Recovery, Claims/Dispute Resolution, Expert Testimony, and Insurance Claims Support
While proper planning, execution, and monitoring of reconstruction can vastly reduce the risk of disputes, the possibility of project conflict increases following a catastrophe. MRC provides:
- Early detection and resolution of disputes related to delays, scope, quality, cost, and other contractor performance responsibilities;
- Analysis and litigation support utilizing our professionals who have testified as construction and financial experts in a variety of international forums; and
- Support for insurance claims recovery in conjunction with our FACS colleagues by developing timelines for business interruption and cost estimates for property damage, as well as delivering construction accounting and management expertise to facilitate claims documentation.
To learn more , please see the Related Information section at top right of this page.
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