≡Equitable Advisory Services LLC Contract Compliance, Dispute and Damage Analysis
Firm Qualifications and Experience
Company Overview
Equitable Advisory Services LLC (“EAS”) is an accounting and business advisory firm that provides financial advisory services to owners, lenders, developers, investors and their counsel in relation to large construction projects, contracts and programs. EAS provides contract compliance, cost review, dispute avoidance and dispute resolution services as a supplement to client’s existing construction management and payment controls to ensure compliance with construction contracts. In the event that a dispute has arisen, EAS also performs dispute resolution, issue analysis, damage analysis and, if needed, expert testimony in litigation matters.
EAS understands that the services it performs are highly technical and they require extensive expertise and experience to be performed effectively and efficiently. EAS was formed, and operates under, a philosophy to provide highly experienced professionals to its clients, without the high overhead costs typically incurred within the large public accounting firm structure. Because of this philosophy, EAS is able to provide its clients with professionals who possess significantly more expertise and experience than is available within a large public accounting firm structure, at anywhere near a comparable cost. As a result, EAS clients receive the benefit of professionals with significantly more expertise and experience, a greater quality and level of service and greater engagement efficiency for the cost clients incur. Additional benefits of EAS’s philosophy of providing higher level professionals includes greater efficiency in the use of our client’s time and resources and greater efficiency in the use of auditee/reviewee time and resources required during engagements. All of these benefits result in greater engagement effectiveness, while maintaining appropriate professional interaction and relationships with clients and their contractors.
Our Services
EAS provides services focused on ensuring that its clients receive the full benefit of the bargain from the contracts they have entered into, or that clients are compensated appropriately in instances where they do not. EAS’ primary services include the following:
Construction Cost Review and Verification Services
▪ Ongoing billing and cost review
▪ Compliance monitoring and verification
▪ Change order cost review and verification
▪ General conditions and overhead cost review
▪ Final accounting of project costs
▪ Final, closeout and post-closeout cost reviews
▪ GMP and Contract Sum determination
▪ Cost Savings determination
▪ Specific issue review, assessment and resolution
▪ COVID-19, force majeure and exceptional event cost review and analysis
▪ Project cost, progress and budget reviews
▪ Project financial snapshots
Construction Contract, Project and Program Advisory Services
▪ Contracting and contract term formulation and /improvement
▪ Project controls reviews
▪ Program controls reviews
▪ Program and project structure development
▪ Financial and project controls development
▪ Processes, procedure and controls development, review, assessment and improvement
▪ Billing, documentation and reporting requirement formulation
▪ Billing, documentation and reporting monitoring and oversight
▪ Contract administration, compliance monitoring and cost control
Claims, Dispute Avoidance and Resolution Services
▪ Agreement terms and conditions review and formulation
▪ Reporting and documentation requirements
▪ Contract and compliance monitoring and oversight
▪ Issue review and analysis
▪ Change order review
▪ COVID-19, force majeure and exceptional event claims analysis
▪ Cost and Delay
▪ Issue negotiation and settlement support
Litigation Services
▪ Analysis of financial merits
▪ Financial capacity and solvency assessment
▪ Breach of contract analysis
▪ Forensic accounting analysis
▪ Fraud assessment and analysis
▪ Diversion of assets
▪ Damage calculations
▪ Expert opinions
▪ Expert witness services
Construction Cost Review and Advisory Services
Our Practice
EAS provides advisory services to owners, developers, and lenders focused on evaluating and assessing construction programs, projects and costs, resolving issues and disputes originating from large complex construction programs and projects. Our multi-discipline team of professionals combines their skills to identify and evaluate not only the nature and appropriateness of the costs themselves, but also the nature of the activities from which the costs arise. We then use our complete understanding of the costs and underlying activities to ensure adherence to construction contracts and to control costs resulting from those agreements.
We provide our services to private, public, governmental and quasi-governmental clients and regularly represent owners, investors and developers with their program and project needs. We have audited or reviewed a wide range of construction costs on projects ranging from a few million dollars to projects in excess of $4 billion. We are also regularly called upon to apply our services on a programmatic basis across multiple programs.
Whether we are ensuring the appropriateness of billings or costs, our clients receive assurance that their contractual rights are being adhered to, complied with and appropriately accounted for pursuant to the terms of the agreements they have entered. All of our services concentrate on assessing contractor and vendor adherence to the financial, compliance and performance terms, conditions and other provisions of the agreements entered into by our clients.
Established Processes and Procedures
As a result of our significant specific contract compliance experience, our clients are able to leverage a deep understanding and knowledge base of processes and procedures thus avoiding a “learning curve” and process development costs. Our clients benefit from the expertise of seasoned specialists who thoroughly understand different types of construction costs, different contracting methods, the relationship between contracting costs and contracting methods, and the risks associated with each type of contracting method and cost. This insight enables us to deliver a more targeted and thorough review focused on costs that present the highest degree of risk to a project or a program.
Construction Cost Review Service Approach
Our construction cost review process consists of a series of steps that audit, analyze and compare contractors’ billings and compliance to the terms of the underlying contracts. Our professionals review and compile your contractors’ billings, separate them into source components, measure them against the specific financial terms of the underlying contracts and scrutinize them based on the specifically applicable contract terms. After which, we identify and separate costs that are commensurate with contract terms, as well as costs that are outside of contract terms. At completion of our work, clients receive verification of costs commensurate with contract terms and those costs billed by contractors that are outside of (in excess of) contract terms. Along with this, our teams assemble and generate full documentation of all costs that are outside of agreement terms, which is typically presented to owners, project management and when appropriate contractors to clearly demonstrate and support amounts billed in excess of contract terms. EAS provides project owners with complete detail as to our findings, as well as, recommended courses of action to recover amounts billed in excess of contract terms. When requested, we also recommend corrective action in the form of improved controls so that clients can achieve improved compliance on future projects. Also, when requested, EAS is available to provide support to project owners to present, discuss and resolve findings with contractor’s representatives, to support recovery of any amounts billed in excess of contract terms.
Contingent upon the course of action dictated by project owners and contractor response, EAS also provides additional support services, as requested, commensurate with the course of action desired to be taken by project management or owners. This assistance often includes settlement and negotiation with contractors, support to operations, procurement and/or legal departments and support in the event of legal action pursued by project owners.
Construction Cost Review Process
Over the years, we have developed and refined standard approaches, processes and procedures to review or audit construction costs that are customized for the unique circumstances surrounding each cost type, construction project and construction contract. EAS teams focus on verifying that construction costs billed to project owners are commensurate with the terms and conditions of underlying contracts and appropriate based upon the underlying agreements. To the extent that costs do not correspond with the terms and conditions of underlying contracts, or should be borne by another party, EAS identifies both, the specific cost as well as, the cause of the cost. EAS then focuses on providing sufficient basis for resolving issues.
Our construction cost review process typically includes the following activities:
· Review, analysis and abstraction of contract terms and conditions
· Identification of areas of primary risk and identification of ambiguities in contract terms
· Recommendations for clarification or improvement of ambiguous or inadequate contract terms
· Recommendation of risk mitigation processes, procedures and tools
· Recommendation of improvements to owner’s processes, procedures and controls
· Review of contractors’ bids and proposals prior to award for compliance with contract terms
· Detailed comparison of contractor billings to the terms and conditions of the underlying contract(s) focused on identified areas presenting
a high degree of risk
· Detailed analysis of labor and burden costs and mark-ups
· Identification and documentation of costs billed in excess of contract terms
· Verification of compliance with relevant terms and conditions of contracts such as insurance, bonding, letters of credit, minimum wage rates, target market, residence and local content
· Computation, audit and verification of amounts due under guaranteed maximum price contracts and shared savings clauses
· Presentation of our findings and recommendations pertaining to recovery of amounts over-billed
· Assistance with recovery, negotiation and settlement of disputed amounts and issues
· Assistance and support with course of action dictated by project owners and contractor response
By utilizing our construction cost audit or review services, clients receive an independent assessment of risks and construction costs that invariably lead to cost savings. If involved at project inception, we can also assist in identifying risk and in recommending adequate processes, procedures and controls that contain costs and assist in keeping projects within budget and expectations. If we are involved on an ongoing basis throughout the project, we can review invoices and pay applications and identify costs in excess of contract terms thereby giving clients adequate information to contain and control costs as and before they are incurred. On an after-the-fact basis, our audits identify specific issues on which costs are based and quantify costs by issue in order to provide clients with sufficient relevant information to identify and contest costs in excess of contract terms. Invariably, the savings and value received by our clients far exceed fees incurred for the service. It is not uncommon for EAS to identify overbillings in the range of 3% to 5% of total costs audited.
Construction Program and Project Advisory Services
EAS professionals provide construction program and project consulting services to owners, developers, and lenders of constructions projects. By utilizing our program and project advisory services, clients are able to monitor, track and control construction costs. When leveraged over an entire program, it is not uncommon for clients to save millions or tens of millions of dollars in construction costs. On a program basis, savings on the order of 50 times EAS fees are not uncommon. These services include:
· Assistance in developing or refining program structure and organization
· Assistance in structuring financial terms of contracts
· Benchmarking industry costs and market price levels
· Change order scope and pricing review
· Change order tracking
· Compliance monitoring
· Contingency and allowance tracking, review and assessment
· Establishing contract oversight controls
· Establishing monitoring, tracking and reporting requirements
· GMP and cost savings amount review and determination
· GMP tracking, monitoring and audit
· Identification, recommendation and implementation of risk mitigation processes, procedures and tools
· Invoice and pay application review
· OCIP audit and monitoring
· Ongoing monitoring and oversight
· Participant role and responsibility identification
· Pricing and fairness assessments
· Target market and special program monitoring and audit
· Value engineering assessment and support
Dispute Avoidance and Resolution Services
EAS provides dispute avoidance services specifically focused on eliminating, minimizing and resolving construction contract disputes. EAS dispute avoidance and resolution services include the following services:
· Agreement structuring and contract term formulation
· Ongoing cost and compliance monitoring and oversight
· Issue review and resolution (including negotiation and settlement assistance)
· Dispute avoidance control development
· Fairness reviews and opinions on dispute issues
· Change order reviews
· Construction delay and disruption claims analysis
· Rebuttal reviews and opinions
Litigation Services
While it is our hope that all differences between the parties to a construction contract can be resolved through effective financial oversight and communication, negotiation and settlement of disputes, we understand that disputes frequently do arise that result in arbitration, mediation and/or litigation. In these instances, we provide litigation support services focused on obtaining a successful outcome to the litigation or alternative processes being pursued. Our litigation services provide clients with clear and concise assessment of issues and of damages. Whether the matter requires in-depth forensic investigations, an assessment of fraudulent activities or the quantification of damages incurred by another party’s breach of the underlying construction contract, EAS provided skilled assessments of the issues and impact of breaches and other failures to perform in accordance with contracts entered. EAS provide highly qualified expert assessments, opinions and related testimony to support litigation mediation, arbitration and litigation actions. EAS’s experts have been retained for some of the largest construction litigation matters in the industry, including projects located throughout the United States as well as abroad. EAS’ litigation services rendered related to construction disputes include:
· Contract sum determination
· Financial analysis of contractor’s financial capacity and solvency
· Breach of contract actions
· Contract cost and schedule delay claims
· Extended and additional overhead claims
· Change order cost disputes
· Overhead financial analysis of contractor’s financial capacity and solvency
· Breach of contract actions
· Construction defects claims
· Contract cost and schedule delay claims
· Forensic accounting exercises
· Fraud assessment and documentation
· Damage calculations and rebuttal
· Expert witness opinions and testimony
Whatever the matter of the dispute EAS provides a sound, objective and independent assessment of the merits and financial impact of the breaching party’s actions, EAS then provides experienced, seasoned professional testimony presenting and explaining its conclusions and opinions.
Our Managing Principal
Larry W. Schaedel, CPA, CFE
Managing Principal
Summary of Experience
Larry Schaedel is a Certified Public Accountant, a Certified Fraud Examiner and the Managing Principal of Equitable Advisory Services, LLC (EAS), an accounting and business advisory firm that specializes in providing construction advisory services related to construction projects, programs and disputes. Mr. Schaedel has over 30 years of forensic accounting experience focusing on the review and assessment of adherence to the financial, performance and compliance terms and conditions of construction, construction management and other professional services contracts. Mr. Schaedel is also highly trained and experienced in providing services related to the investigation and detection of fraud and fraudulent activities. Mr. Schaedel is frequently engaged as a consulting or testifying damages expert in mediation, arbitration and litigation matters.
As Managing Principal for EAS, Mr. Schaedel is responsible for the management, oversight and performance of Equitable Advisory Services, LLC’s construction advisory, construction cost review, dispute advisory and forensic accounting engagements. In his role for EAS, Mr. Schaedel also manages and oversees EAS dispute and damage analysis engagements, serves as a consulting expert, and provides expert testimony in litigation matters. Mr. Schaedel also manages forensic accounting and investigative engagements focused on the detection, documentation and quantification of damages resulting from fraud, fraudulent conveyances, embezzlement, and misappropriation of assets, concealment, and other types of fraudulent activities.
From 1988 through July 2015, Mr. Schaedel was a Partner, or employee, of RSM US LLP or its predecessors (RSM). During these years, Mr. Schaedel worked within the Financial Advisory Services (Litigation) Practice, was the National Lead of McGladrey’s Contract Compliance Services and was the Great Lakes Regional Leader of McGladrey’s Construction Cost Review and Advisory Services practice. While at RSM, Mr. Schaedel performed in excess of one thousand construction contract and cost review, construction dispute and other construction advisory services engagements. During these years, Mr. Schaedel also assisted clients by performing project and program risk assessments, project and program audits, establishing construction and capital programs and by establishing construction management controls, processes and procedures for construction programs and projects.
Throughout his career, Mr. Schaedel has regularly provided services related to matters both, outside of, and within, the context of litigation or dispute. Throughout his career, Mr. Schaedel has also routinely provided services to private and public sector clients involved in various disputes, defalcations or other civil or criminal matters.
Prior to joining RSM, Mr. Schaedel was a Supervisor with the accounting firm of Matson Driscoll and Damico and specialized in the calculation of losses covered under property damage, business income and surety and fidelity insurance contracts for the property and casualty insurance carriers. Within this role, Mr. Schaedel focused on calculating losses based upon property damage, lost profits, extra expenses and expenses to reduce loss. Prior to joining Matson Driscoll & Damico, Mr. Schaedel prepared financial projections, performed financial analysis, and performed general accounting and auditing functions for Fortune 500 company, Chicago Pneumatic Tool Company.
Construction Cost Review, Dispute and Advisory Service Experience
Examples of assignments for which Mr. Schaedel has served as a consulting or testifying expert and/or engagement lead focusing on the review of construction costs, construction claims, adherence to contract terms, performance, disputes or the detection and quantification of fraud (and other types white collar crime) for the following various industries, include the following projects:
Higher Education and School Construction Project Experience
- University of Connecticut, UConn 2000 Construction Program, Storrs, Connecticut – An audit and agreed upon procedures of “named”
projects and deferred capital maintenance projects in excess of $500,000 completed by The University of Connecticut, through their UConn
2000 Construction Program over a five-year period ended in 2016. Scope of work included over 200 projects completed, or in process, over
a four-year contract term.
- University of North Texas, New Student Union, Denton, Texas - The review of costs incurred to demolish, expand and construct a New
Student Union Building located on the UNT’s Denton, Texas campus. The project consisted of the demolition of the existing structure down
to the superstructure and the expansion of space of approximately two and a half times the existing square footage. The scope of work
consisted of the review and verification of approximately $85 million dollars of hard construction costs, submitted by a national contractor,
incurred over an approximately 24-month period.
- George Mason University, New Student Housing, Fairfax, Virginia – The Review of approximately $22 million of construction project related
to the construction of a new student apartment and retail building being constructed George Mason University located in Virginia. Review
focused on identifying the causation and quantifying the amount of cost over runs incurred over an anticipated $13 million project budget.
- University House Student Housing Project, Georgia Technical Institute, Atlanta, Georgia – The review of construction costs arising from the
construction of an $85 million, 19 floor luxury student apartment building located in Midtown Atlanta, Georgia.
- Chicago Board of Education Capital Program Review, Chicago, Illinois – Performed an organizational and process review of Chicago Public
Schools existing capital program structure in place to facilitate, manage and oversee CPS’ capital construction projects. The review included
recommendations for the structural and process changes to CPS’ existing capital program.
- Chicago Board of Education/Chicago Public Schools, Construction Cost Review of New School and Addition Costs, Chicago, Illinois – The
review and analysis of project management, construction management, general contractor, specific project, change order and other
construction costs incurred by the Chicago Public Schools within their Capital Improvements Program over a 4-year period. Work included
the review of approximately $1 billion of construction costs incurred by the Program Manager, Construction Managers, Property Advisors,
general contractors, contractors and subcontractors. Contract costs were initiated under Fixed Price/Lump Sum, Cost Plus/GMP, T & M and
contracting methods.
Health Care and Hospital Construction Project Experience
- Rush University Medical Center Phase I Construction, Chicago, Illinois – The review of approximately $100 million of Phase I Demolition,
excavation, foundation, steel and superstructure construction costs incurred under a Fixed price/Lump Sum Contract and arising from the
construction of the Rush University Medical Center located in Chicago, Illinois.
- University of Chicago Medical Center, Chicago, Illinois – The review of approximately 557 change orders executed as a result of construction
of the new University of Chicago Medical Center building being built for the University of Chicago located in Chicago, Illinois.
- Gillette Children’s Specialty Hospital, Minneapolis, Minnesota - The review of costs and determination of amounts in excess of contract
terms related to the construction of a $21 million hospital building located in Minneapolis, Minnesota.
- Rush University Medical Center Phase II Construction, Chicago, Illinois - The review of approximately $200 million of Phase II exterior
envelope, glazing and mechanical systems construction costs arising from the construction of the Rush University Medical Center located in
Chicago, Illinois.
- University of Connecticut Medical Center, University of Connecticut, Storrs, Connecticut – Performed an Audit and Agreed Upon Procedures
on the University of Connecticut’s approximately $500 million of construction costs arising from the construction of the University’s New
Medical Center.
Transportation Construction Project Experience
- Colorado Department of Transportation, Denver, Colorado - Concession contract monitoring services related to a public private partnership
entered into by the Colorado Department of Transportation related to monitoring the Concessionaire’s adherence and performance under a
fifty (50) year concession agreement to construct, operate and manage toll operations of the I25 / US 30 Managed Lanes located between
Denver, Colorado and Boulder, Colorado. Construction costs for the project exceeded $570 million obtained from Federal and State funding
sources. The scope of work included developing and performing Concessionaire monitoring services focused on compliance to agreement
terms and conditions as well as developing performance measures against which to monitor Concessionaire performance for the
subsequent 50 years.
- Chicago Department of Transportation, Chicago, Illinois - The review of approximately 350 federal, state and locally funded transportation
construction projects funded through the Illinois Department of Transportation and managed by the Chicago Department of Transportation.
- Illinois Department of Transportation, Springfield, Illinois - A review of approximately 80 State funded highway and bridge construction
projects funded and managed by the Illinois Department of Transportation. The reviews typically included a review of contract costs and
quantities, as well as, a review of adherence to IDOT’s project management process, procedures and controls.
- Northeast Illinois Commuter Rail System (METRA), Chicago, Illinois - Monitoring contractor performance and approximately $480 million of
billings related to contracts to construct 300 Bi- Level Railcars and 27 Locomotives for the Metra commuter rail service in Chicago, Illinois.
Included in the scope of the project was to verify and monitor the financial capacity of approximately 80 major subcontractors participating in
the project.
- Midway Airport Transformation/MTH, Inc., City of Chicago, Department of Aviation, Chicago, Illinois - Review and analysis of a construction
claim submitted by a supplier of doors and door hardware required for the Chicago Midway Airport Terminal Expansion Program.
- Chicago Department of Transportation/City of Chicago, Chicago, Illinois - Financial, forensic and fraud investigations related to several
construction programs, specific projects and contracts including cement supply, asphalt resurfacing, street and highway construction, utilities
adjustment, curb and gutter, and sidewalk programs for the City of Chicago, Illinois Department of Transportation.
- Sound Transit Program Management Contract Reviews, Seattle, Washington – Performed several reviews of Sound Transit light rail
program and project management contract managed by Parsons Brinkerhoff. Reviews included reviews of costs billed and adherence to
project management terms and conditions.
Hotel, Resort, Casino and Restaurant Construction Project Experience
- Cosmopolitan Resort and Casino, Las Vegas, Nevada - The identification and review of approximately $900 million of construction and soft
costs arising from the construction of a $3.7 million new resort casino being built on Las Vegas Boulevard in Las Vegas, Nevada. Work also
included the determination (forecasting) of final project costs, the identification of committed costs and contracts, an analysis of sales, sales
commitments and various other tasks needed to provide the lender with sufficient financial information related to the project to evaluate
divesture and ownership options subsequent to a failed equity deal.
- Capella Pedregal Resort, Cabo St. Lucas, Mexico - The review and analysis of construction costs arising from the construction of an
approximately $105 million resort development and construction project located Cabo St. Lucas, Mexico. The review included a detailed
review of general conditions cost which carried a separate contractual limit.
- The Cromwell Resort and Casino, Las Vegas, Nevada – The review of an approximately $80 million Cost Plus/Guaranteed Maximum Price
agreement for the demolition and conversion of Bill’s Gambling Hall into The Cromwell Resort, located in Las Vegas, Nevada.
- Harrah’s Resort and Casino, Las Vegas, Nevada – The review of approximately $65 million dollars of renovation and remodeling costs under
a Cost Plus/Guaranteed Maximum Price Contract for the renovation of guest rooms at Harrah’s Resort and Casino located in Las Vegas,
Nevada.
- Bacchanal Buffet, Caesars palace, Las Vegas, Nevada – The review of approximately $15 million of construction costs arising from the
construction of the Bacchanal Buffet located in Caesars Palace in Las Vegas Nevada.
- Nobu Restaurant, Caesars Palace, Las Vegas, Nevada – The review of approximately $25 million of construction costs arising from the
construction of Nobu Restaurant located in Caesars Palace in Las Vegas, Nevada.
- Flamingo Resort, Las Vegas, Nevada – The review of approximately $45 million of construction costs arising from the remodeling of rooms
at the Flamingo Resort located in Las Vegas, Nevada.
Multi-Family and Mixed Use Residential Construction Project Experience
- Heritage Millennium Building/Mesa Development, Chicago, Illinois - A review and identification of amounts billed in excess of agreement
terms arising from the construction of a $200 million mixed use residential, retail and commercial building being built within the Chicago Loop
located in Chicago, Illinois.
- CH Silverado Ranch, JV. Las Vegas, Nevada - The calculation of damages incurred by a limited partner resulting from diversion and misuse
of partnership assets that led to the default and failure of an approximately 240 unit residential development project located in Las Vegas,
Nevada.
- Prairie District Homes Condominium Association, Chicago, Illinois - Review and analysis of the financial capacity and solvency of the
developer of an approximately $80 million condominium building located in Chicago, Illinois in support of an action against the developer and
contractors related to an approximately $8 million construction defects claim. The primary focus of work on this matter was on the on the
financial capacity and solvency of the developer, who also held an equity stake in the property before, during and subsequent to the
performance period of the developer’s contract.
Public Infrastructure Construction Project Experience
- City of San Francisco, Sunol Valley Water Treatment Center, San Francisco, California - Review of a contractor’s claim for extended,
expanded and additional general conditions costs resulting from changes made to an $84 million upgrade and expansion of the Sunol Valley
Water Treatment Plant located in Sunol Valley, California. Project included a review of change orders costs and the review of a construction
delay claim submitted by a national contractor.
- iFiber, Fiber Optic Network, Northern Illinois University, Dekalb, Illinois – Assistance with contracting method selection, contract terms and
conditions formulation, bid review, contract negotiations and contractor selection. Assisted owner in reducing contract cost from $85 million
to approximately $70 million.
- Ozinga Cement Supply Contract, City of Chicago, Chicago, Illinois - A financial investigation into the billing practices of cement supply
contractor/vendor billing cement costs to the City of Chicago under a city-wide cement supply agreement. The focus of the work included a
review of the Supplier’s billing practices for cement purportedly delivered to the City under the terms of the city-wide supply agreement.
- Utilities Adjustment Program, Chicago Department of Transportation, Chicago, Illinois – A review of the City of Chicago’s Utility Adjustment
Program, including a review of Program processes procedures and controls. Review also included a review for compliance with program
requirements and a review of pricing of work procured under the Program.
- City Curb and Gutter Program, Chicago Department of Transportation, Chicago, Illinois – A review of the City of Chicago’s Curb and Gutter
Program, including a review of Program processes procedures and controls. Review also included a review for compliance with program
requirements and a review of pricing of work procured under the Program.
- City Sidewalk Program, Chicago Department of Transportation, Chicago, Illinois – A review of the City of Chicago’s Citywide Sidewalk
Program, including a review of Program processes procedures and controls. Review also included a review for compliance with program
requirements and a review of pricing of work procured under the Program.
Commercial and Industrial Construction Project Experience
- 30 Rockefeller Center Office Fit Out/Deloitte LLP, New York, New York – Review of contractor billings for approximately $80 million of office
fit out work performed by a general contractor related to the construction of Deloitte Office space construction within the Rockefeller Center
located in New York, New York.
- First Industrial I83 Warehouse, Indianapolis, Indiana - The review of approximately $23 million of construction costs incurred to construct a
“tilt up” warehouse building, with approximately 20,000 square feet of office space located in New Jersey.
- Duke Realty Construction Program Review, Duke Realty, Indianapolis, Indiana – Performed a review of adherence to Duke Realty’s
standard operating procedures in place for its capital construction program. Project reviewed included its Gateway I and II, HH Craig,
Kuehne & Nagel, Facet, RR Donnelley Phase I and RR Donnelley Phase II.
- Phillips 66/Matrix, Inc., Eddystone, Pennsylvania – Engaged as a neutral intermediary to review, assess and determine costs incurred and
payable under a large construction project related to petroleum refinery improvements performed by Matrix, Inc. for Phillips 66.
- PCB Treatment, Inc., Kansas City, Kansas – Performed an accounting, review and cost certification of remediation costs arising from the
cleanup of an industrial site by a consortium of respondents under an Administrative Order predicated by The United States Environmental
Protection Agency.
- City of North Chicago, North Chicago, Illinois - Forensic/fraud investigation into the negligence of the construction manager of a $9 million
retail commercial building being developed and built by the City of North Chicago. The project involved the use of federal, state and local
funds as well as public financing of the project. In addition to determining the misuse of funds and related damages, also worked with the
Illinois State’s Attorney in coordination with concurrent criminal proceedings related to the matter.
Construction Claim, Dispute and Litigation Experience
- Capella Pedregal Resort, Cabo St. Lucas, Mexico - The review, analysis and testimony related to a construction delay claim arising from the
construction of an approximately $105 million resort development and construction project located Cabo St. Lucas, Mexico. The dispute,
which was resolved through arbitration, included an analysis of general conditions costs, the identification of non-project costs, the review
and analysis of contractor’s schedule, additional overhead costs and a business interruption claim submitted by a national contractor as a
result of a construction delay resulting from an unforeseen condition.
- Ganna Construction, Inc., Construction Delay Claim, Chicago, Illinois - Review and analysis of a construction delay claim submitted by a
general contractor hired to perform road construction work related to redirecting Central Avenue in preparation for the Chicago Midway
Airport Terminal Expansion Program. The delay claim involved mostly damages resulting for project delay arising from additional home office
and extended overhead.
- Sunol Valley Water Treatment Center Improvement Project, City of San Francisco - Review of a contractor’s claim for extended, expanded
and additional general conditions costs resulting from changes made to an $84 million upgrade and expansion of the Sunol Valley Water
Treatment Plant located in Sunol Valley, California. Project included a review of change orders costs and the review of a construction delay
claim submitted by a national contractor.
- MTH, Inc./City of Chicago Department of Aviation, Chicago, Illinois - Review and analysis of a construction claim submitted by a supplier of
doors and door hardware required for the Chicago Midway Airport Terminal Expansion Program.
- Nantucket Island Luxury Residence, Nantucket, Connecticut – Provided financial, cost, damage and financial solvency analysis related to a
breach of construction contract action initiated by an owner of a residential construction project, against a General Contractor/luxury home
builder who purportedly defaulted on the construction of a $24 million residence.
- Eurocon, Inc./City of Chicago, Department of Aviation, Chicago, Illinois - The review and analysis of a construction claim submitted by a
concrete contractor performing street, fly over bridge, parking lot, curb and gutter and other concrete work related to the Chicago Midway
Airport Terminal Expansion Program.
Forensic Accounting and Fraud Investigation Experience
Performed approximately 40 forensic accounting and or fraud engagements focused on detecting, quantifying and proving fraud,
embezzlement, theft, diversion of assets, concealment and other white collar crimes committed by individuals and entities.
Property Damage, Business Interruption and Fidelity Loss Review and Calculation Experience
Performed over 50 property damage, business interruption and fidelity loss calculations arising from of insured’s claims on behalf of property
and casualty insurance carriers. Loss review and claim calculations performed ranged from approximately $100,000 to $250,000,000 in a
wide variety of industries.
Breach of Contract Damage Calculation Experience
Performed over 25 commercial loss calculations arising from breach of contract actions in litigation matters. Matters included breach of
contract, breach of fiduciary duty, patent and territory infringement, tortious interference, breach of warranty, partnership dissolution and
other dispute matters. Was typically engaged as a consulting expert, then was engaged as a testifying expert in litigation.
Lost Income / Lost Earnings Calculation Experiences
Performed over 65 lost earnings and/or lost income calculations resulting from personal injury, wrongful death and wrongful termination on
behalf of Defendants and Plaintiffs in conjunction with litigation matters.
Commercial Damage Calculation Experience
Performed approximately 25 commercial damage calculations arising from breach of contract, breach of fiduciary duty, breach of warranty,
patent, territory or franchise infringements, partnership dissolution and other various other litigation actions.
Education and Certifications
Illinois State University - Bachelor of Science Degree in Accounting Certified Public Accountant - Illinois
Certified Fraud Examiner – National Association of Certified Fraud Examiners
Professional Memberships and Additional Training
American Institute of Certified Public Accountants – AICPA’s Role in Litigation Support Services - Advanced Litigation Services
National Association of Certified Fraud Examiners – Fraud Investigation Symposium Illinois CPA Society – Fraud Conference
Institute of Internal Auditors – Fraud Conference
American Society for Industrial Security – Insurance Fraud Workshop Hundreds of hours of fraud and fraud related training courses
Illinois Institute for Continuing Education - “Effective Use of Expert Witnesses in Personal Injury Litigation”
American Society of Appraisers – Business Valuations BV201, 202, 203 & 204
Publications
“Proposed Technical Consulting Practice Aid for Calculation of Damages from Personal Injury, Wrongful Termination, Wrongful Death and
Discrimination” - 1998, Task Force Member, American Institute of Certified Public Accountants.
Contact Information
To inquire about our services, please contact:
Larry W. Schaedel, CPA, CFE
Managing Principal
Equitable Advisory Services LLC
350 West Hubbard Street, Suite 210
Chicago, Illinois 60654
Phone (312) 806-4729
Email larryschaedel@equitableadvisory.com
Company website: www.equitableadvisory.com