Here at Construction Project Neutral, LLC, we provide a designated neutral party familiar with construction law who will remain available throughout the duration of your project to assist with any disagreements that may occur without the need for expensive litigation.


Sample Contract

Proposed Fee Schedule

Owner’s Project Budget

$10 mill < $50 mill

$50 mill +




  • Travel expenses reimbursed based upon actual cost or mileage.

  • A complexity factor of up to 0.0025 may be added depending on the nature of the Project.

The fee is due on a monthly basis to be paid based upon the lump sum fee divided by duration of the project, For example, if the Project Budget is $20 mill, the Standing Neutral fee is $200,000, and the Work is scheduled for a 30 month duration, then monthly payments = $6,666.67 for 30 months.

The purpose of this payment is to compensate the Standing Neutral for time needed during the progress of the work to stay informed about all issues through correspondence, meetings, and site visits. Staying up to speed daily allows the Standing Neutral to act quickly and decisively immediately upon being requested by any party to resolve a dispute. Quick action to limit the duration between claim and resolution to an absolute minimum is the key feature of this program. By minimizing the amount of time from when the dispute arises until when the dispute is resolved minimizes

  1. delay damages to all parties;

  2. disruption to the progress of the work; and

  3. the cost to fund the typical dispute resolution process, litigation, or standard arbitration, by eliminating the opportunity for the lawyers to spend money and disrupt the completion of the Work.


Explanation of Service

The goal of this service is to identify specific risks associated with a specific project to mitigate damages. Each audit should be tailored to the scope, location and people involved. Timing is everything because as time elapses the dispute mitigation/risk management becomes more reactive rather than proactive, more complicated, and more expensive.

Pre-construction risk audit may include:

  1. Review and analyze the “Issued for Construction” plans and specs for completeness and coordination

  2. Identify risks associated with delegated design and shop drawings

  3. Review coordination of contract documents (contract, gen conditions, addenda, supp conditions, etc.)

  4. Identify risks inherent in the amount of time and money allotted for design and for construction

  5. Review warranties on major or critical items

  6. Advise client on specific risk management opportunities and project contingencies including dispute resolution process

Audit during construction may also include:

  1. Review on-going work on-site

  2. Review Project document control and compliance with paperwork requirements of the Contract Documents, including:

  3. Maintenance of on-going set of as-builts

  4. Change Orders, RFI, RFC, directives

  5. Non-Compliance Reports

  6. Project daily documentations

  7. Tests, inspections, and reports done on work

  8. Review Construction schedules, manpower and Project budget

  9. Claims analysis

Post-Construction Audit may also include:

  1. Review close-out document compliance including warranties

  2. Review status of disputes not resolved

  3. Review occupancy and insurance issues

  4. Review any “reserved” rights that continue past completion

Proposed Fee Schedule

We use rule of thumb to budget the cost of the construction audit however each assignment is separately negotiated based upon scope and time:

  1. Pre-Construction .......... 0.0005% times the construction project cost

    • $50 million project should have 250 audit hours @ 200/HR = $50,000

  2. During Construction .... 0.003% times the construction project cost

    • $50 million project should have 1,500 audit hours @$200/hr = $ 300,000 (based upon 2-year engagement)

  3. Post-Completion ......... 0.00005% times the construction project cost

    • $50 million project should have 250 audit hours @ 200/HR = $50,000