This highly complex economic expert assignment was requested by the operating entity of a Luxury Urban Hotel after a deep dispute arose during the settlement phase of the final certifications, derived from the comprehensive renovation of several guest room floors. The property submitted a party-appointed expert report alleging unjustified cost overruns compared to theoretical market prices. Our report acted as an shielding audit, demonstrating the legitimacy of the charges.
1) The Conflict
- The complete renovation of upper-level rooms was carried out while the hotel complex maintained its accommodation operations intact.
- During the progress of the works, qualitative increases and design modifications were authorized.
- Upon completion, a counter-report emerged that attempted to challenge the invoicing by assimilating the construction costs to standard generic construction scales, ignoring the reality of the intervention.
2) Forensic Audit Deployment
We deployed a strategy based on the mathematical and documentary reconstruction of the construction milestones:
- Documentary Traceability: We cross-referenced the base budget with the monthly certifications, the 'change order' annexes, and the electronic correspondence that demonstrated the conformity of the hotel's technical management regarding the improvements.
- Parametric Market Study: We refuted the opposing thesis. A top-tier hotel does not operate with standard construction prices. We used specialized price databases (BEDEC) applying the mandatory correcting coefficients for: execution on high floors, severe noise/schedule restrictions due to the hotel being active, and premium finishes.
- Margin Analysis: The contractor's income statement was audited, verifying that the Industrial Profit applied to the new items did not exceed the originally bid margins.
3) The Technical Ruling
Our firm's report categorically dismantled the counter-expert report for incurring in serious homogeneity biases (comparing interventions that are not alike). We demonstrated that the certified amounts were fair, equitable, and strictly proportional to the quality executed and the high degree of logistical difficulty imposed by the property.
4) Conclusion and Value Added
We delivered an endorsed expert report that not only supported the contractor's collection rights for the entire withheld amount, but also served to prevent the prolongation of legal proceedings, forcing an agreement based on irrefutable technical data.
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