Case Study: Positive Developments - Streamlining Construction Cost Audits
Client name: Positive Developments
Industry: Construction
Executive Summary
Positive Developments, a leading developer of Affordable Housing in California with a track record of developing and building more than 5,000 units, sought to gain deeper insights and greater control over its construction costs. To achieve this, they partnered with Remote Financial Services to conduct a comprehensive audit of several recently completed projects. By leveraging Remote Financial Services’ offshore team of experienced construction accountants and project managers, Positive Developments was able to achieve significant cost savings and improve operational efficiency.
The Challenge
Positive Developments faced the following challenges:
- Complex Data: A large volume of invoices, contracts, and other financial documents from various sources.
- Time Constraints: The need for timely analysis and insights to inform future decision-making.
- Cost Efficiency: The desire to optimize costs without compromising quality.
The Solution
Remote Financial Services provided a comprehensive solution tailored to Positive Developments’ specific needs:
- Offshore Team Deployment: A dedicated team of experienced, chartered/credentialed construction accountants was assembled to handle the data analysis and categorization tasks.
- Data Organization and Analysis: The team meticulously categorized, databased, and indexed every invoice and contract related to the projects, creating a centralized repository for easy access and analysis.
- Dashboard Development: A user-friendly dashboard was developed to visualize key metrics and trends, empowering Positive Developments to make informed decisions.
- Expert Review: A seasoned construction project manager conducted a thorough review of contracts, timelines, material costs, labor expenses, change orders, and other relevant documents.
- Cost Optimization Analysis: The expert identified potential cost savings through price comparisons, redundancy analysis, and fraud detection.
- Comprehensive Reporting: Detailed reports were generated, summarizing the findings and recommendations, enabling Positive Developments’ executive team to make strategic decisions.
The Results
By partnering with Remote Financial Services, Positive Developments achieved the following:
- Enhanced Visibility: A clear and comprehensive understanding of construction costs.
- Improved Decision-Making: Data-driven insights to inform future project planning and budgeting.
- Cost Savings: Identification of potential cost reductions through optimized processes and reduced redundancies.
- Risk Mitigation: Proactive identification and mitigation of potential financial risks.
- Increased Efficiency: Streamlined workflows and reduced administrative burden.
Conclusion
Remote Financial Services’ expertise in financial review and in construction accounting enabled Positive Developments to achieve significant cost savings and operational efficiencies. By leveraging offshore talent and advanced analytics, Positive Developments gained greater control over its construction costs, positioning itself for continued success in the affordable housing market.
