Key West Whole House Improvements

Key West, Florida

Owner: US Navy

Client Name: Metric Construction Co., Inc. / ICG Electric, Inc. / Oconee Enterprises/ Scott Griffin, Inc./ Cenco Construction Co./ Leneve Painting, Inc./ RDC Construction Co., Inc./ Thermo Products Insulation, Inc.

Engagement Scope

Pursuant to an agreement between Metric and the contracting officer's representative, it was agreed that the numerous contract modifications, overhead rates, and other associated, unresolved change order pricing issues would be resolved through negotiations utilizing a "cost plus" approach to the contract. The agreement provided that the government would identify costs for which they felt Metric and its subcontractors were responsible and Metric would prepare an analysis of the total expenditures on the project by itself and its major subcontractors. The proposals assembled by Sutor and Company were a compilation of Metric's and the individual subcontractors' , job cost records, and included test of transactions on those records. Our analysis indicated a proposed contract adjustment of approximately $6,142,000.

Project description

Renovation and rehabilitation of approximately 1,200 housing units at the Key West Naval Air Station, Key West Florida. Contract work included new roofing, insulation, flooring, wall treatment and other various rehabilitation work.

Entitlement issues

Numerous differing site conditions, incomplete and inadequate plans and specifications, extended contract performance period.

Type of impacts

The following general cost categories were identified for Metric and each subcontractor: 1. Direct costs associated with the project. 2. An allocation of home office overhead based on the ratio of project direct costs to total direct costs incurred during the period. 3. Profit and bond markup (as applicable).