accurate, defensible cost reviews
Cost Analysis & Auditing
Forensic review of contractor estimates, invoices, and change orders against actual scope and market pricing. We identify duplication, overhead irregularities, and unsupported line items — and quantify the delta.
What We Do & Why It Matters
Cost Analysis and Auditing
Once the scope of a loss has been established, the next question is whether the costs submitted to address it are accurate and reasonable. That is not always a simple question to answer. Contractor invoices can be complex, scope items can be duplicated or inflated, and unit costs can vary significantly from what is reasonable for the market and the type of work being performed.
At 360BGC, we perform detailed, independent cost reviews that examine contractor charges at the line-item level. We apply our construction expertise to assess whether each item in a scope is reasonably necessary, appropriately priced, and actually related to the covered loss. Where we find items that are excessive, duplicative, or unsupported, we provide a clear recommendation with documentation to back it up.
Our Approach & Tools
How We Analyze and Audit Costs
- 01Line-item review of all submitted scope and cost documentation
- 02Assessment of whether each item is reasonably related to the covered loss
- 03Evaluation of unit costs for labor, material, and equipment against market standards
- 04Identification of duplicate, excessive, or unsupported scope items
- 05Review of regular and prevailing wage rate determinations where applicable
- 06Analysis of contractor means and methods for reasonableness
- 07Written narrative explaining findings and supporting recommendations
- 08Clear cost recommendation for what the carrier or owner is advised to pay
Platforms and Standards We Reference
- Xactimate and XactAnalysis
- RS Means
- CSI cost standards
- CoreLogic
- Marshall-Swift
- Local market rate analysis where applicable
Common questions
FAQ
What does a cost analysis and audit actually involve?
We perform a detailed, line-by-line review of the contractor scope and cost documentation submitted for a project or claim. We assess each item for its applicability to the covered loss, the reasonableness of the unit costs, and whether the scope is appropriate for the type and extent of the damages. We then produce a written report with our findings and a clear cost recommendation.
How do you determine whether a cost is reasonable?
We reference industry standard cost databases including RS Means, Xactimate, and CoreLogic, and apply our own construction expertise to evaluate whether the labor, material, and equipment costs submitted are in line with current market rates for the type of work being performed. We also consider the specific conditions of the project, including location, scope complexity, and any prevailing wage requirements.
Is it worth the cost to have an audit performed on a smaller claim?
That is a fair question and the honest answer is that it depends on the size of the invoice and the complexity of the scope. On larger or more complex files, the savings identified almost always exceed the cost of the review by a significant margin. On smaller files, we are transparent about whether a full audit makes financial sense for your situation. We are happy to have that conversation before you commit.
What if the contractor pushes back on your findings?
We produce detailed, well-documented reports that are built to withstand scrutiny. Our findings are grounded in industry standards and supported by clear narrative. If a contractor disputes our recommendations, we can provide additional documentation and support the negotiation process as needed.