FEATURE ARTICLE, APRIL 2010

PROGRAM SPOTLIGHT: COSTGUARD
RSM McGladrey’s CostGuard program combines financial and hands-on project management experience to ease the construction cost process.
Amy Bigley

Bringing together a team of experienced financial experts and professional architects and engineers to provide construction project oversight and review may seem like a novel idea, but Chicago-based RSM McGladrey implemented such a program, CostGuard, 15 years ago.

Lincoln

“We felt like we brought a different perspective to engineering/construction and financial-relatedservices by leveraging RSM McGladrey’s CPA and accounting reputation and matching it with engineers and construction project managers,” says John Lincoln, a professional engineer and director with RSM McGladrey’s CostGuard division. RSM McGladrey is the fifth largest U.S. provider of accounting, tax and business consulting services, with 7,000 professionals and associates in approximately 90 offices.

CostGuard is a commissioned project oversight and management service for construction projects in all stages. The program is designed to offer customizable services to clients whether at the beginning of a project, in the middle or at the end. The combination of independent financial and construction expertise allows CostGuard to develop an unbiased opinion of cost and construction efficiencies for various projects.

Although the majority of clients are owners, investors, developers and lenders, CostGuard is available to any project participant that may need an extra set of eyes or obstacle management. Whether it’s a complex project with communication issues, reporting problems or specific project-related challenges, CostGuard’s experienced team offers guidance and solutions. The program’s overarching goal is to be an advocate for its clients, explains Lincoln. “Part of our value to our clients is that we’re not allied with a contractor or architect in any way, so we feel that our opinions on what’s happening with a project will be an independent voice in support of our clients,” he says.

In the planning stages of a project, CostGuard can help an owner or developer create an accurate cost estimate that may be presented to a lender, notes Lincoln. Throughout the construction process, the program handles possible miscommunications, reviews contracts and cost forecasts, and prepares accurate and timely progress reporting documentation. Finally, companies can also utilize CostGuard for final review of financial information prior to closing out contracts and the project. 

The program is available across all sectors, but Lincoln notes that interest typically follows market trends, with retail and condominium projects being the most recent projects. CostGuard has also experienced an uptick in financially troubled assets from the economic downturn. “Condominiums are a big deal right now; there are a lot of failed projects,” says Lincoln. “The developers got behind the eight ball because they weren’t able to sell the condominiums as they planned.” Additionally, CostGuard offers certified fraud examiners for investigation of troubled assets, fraudulent money dealings, and mismanagement or diversion of funds.

CostGuard is currently working with the Illinois Department of Transportation (IDOT) to provide additional financial oversight, which is a requirement for use of federal stimulus dollars. IDOT is utilizing CostGuard for audits of its current and on-going road-building, road-repair and bridge-building programs. Governmental entities and city and state municipalities are a major clientele base for CostGuard, as many governmental projects require additional auditing, supervision and other specialized services to ensure that the funds are being spent appropriately.

CostGuard’s combination of CPAs, professional engineers, architects, project managers and project engineers provides a one-stop shop for owners, investors and developers. The independently operated hands-on management and engineering approach of RSM McGladrey’s experienced team allows clients to receive cost and project management analyses through the duration of a project, which helps to maintain a successful cost- and time-efficient project.

For more information on RSM McGladrey’s CostGuard services, contact John Lincoln at 312.634.3199 or john.lincoln@rsmi.com.

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