Forensic Cost Investigation

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Book a Free Consultation

Book a Zoom call with a Solvix consultant at a time that suits you. The Zoom link is sent to you as soon as you book.

What we provide

Solvix International provides forensic cost investigation services for clients who need a clear, evidence-based understanding of the financial side of a project dispute, suspected overstatement, problematic valuation, or commercially complex claim. We review the contract, valuation framework, payment history, change records, accounting evidence, and supporting project records to reconstruct what was claimed, what was certified, what was paid, what was withheld, and what is actually supportable.

This service is relevant when parties need more than routine commercial review. It is designed for contentious, high-value, or technically demanding matters where the cost story must be tested against source records, contractual valuation rules, and factual causation.

Investigations may relate to payment and certification disputes, variation valuation, prolongation and disruption costs, back-charges and set-off, subcontract accounts, or final account positions.

The findings can support claim preparation, claim defence, negotiation, adjudication, arbitration, or litigation, and can be provided as an internal advisory note or as a formal report.

SERVICE SCOPE

What this service covers

Valuation and payment analysis

Trace the relationship between applications, certificates, payment notices, deductions, pay-less positions, and actual cash movement.

Variation and change-cost review

Test whether variations, instructed change, remeasurement, and revised scope have been valued on a defensible basis.

Prolongation and disruption cost testing

Assess site overhead, head-office overhead, labour inefficiency, plant, productivity, and other cost heads where causation matters.

Unsupported or duplicated costs

Identify duplication, double recovery, inconsistent coding, missing source support, or costs outside the issue in dispute.

Typical Cost Heads Investigated

QUANTUM

ANALYSIS

Prolongation costs

Disruption / productivity loss

Defects, rework, termination

Variations & change valuation

Overheads, finance & margin

Acceleration costs

INVESTIGATION OBJECTIVES

What a well-prepared forensic cost investigation should achieve

A forensic cost investigation can be carried out before a claim is submitted, when a claim or payment position is received, or once a dispute has started. It traces each figure back to the source records and the event relied on.

Traceable figures

Each claimed or certified amount is traced from the source records to the value presented.

Tested causation

Costs are linked to the events relied on, and unrelated or pre-existing costs are separated out.

Clear conclusions

The investigation states which sums are supported, which are disputed, and which are not substantiated.

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Successfully Completed Projects

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Years of Industry Experience

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Total Project Investment Value

typical instructions

Common matters we support

Cost disputes often involve large volumes of records that have not been organised around the issues. We map the records to each cost head so that support, gaps, and duplication can be identified.

Payment and certification disputes:

Analysis of applications, certificates, pay-less notices, and withheld sums.

Variation valuation disputes:

Testing of how variations and remeasurement have been valued against the contract rules.

Prolongation and disruption costs:

Testing of time-related and productivity costs for record support and causation.

Back-charges and set-off:

Review of contra-charges, deductions, and set-off claimed against a party.

Subcontract account disputes:

Reconciliation of subcontract accounts, payments, and claimed sums.

Termination and final accounts:

Investigation of sums due on termination or at final account.

COMMON ISSUES

Typical issues we investigate

Whether a claimed amount is supported by source records such as timesheets, invoices, purchase orders, subcontract records, plant logs, valuation sheets, and accounting entries.

Whether payment certificates, notices, deductions, back-charges, set-off positions, or withheld sums reflect a coherent and contractually supportable basis.

Whether the same cost has been claimed more than once through overlapping cost heads, duplicated coding, or concurrent recovery routes.

Whether the financial effect said to arise from a delay, disruption, change, suspension, acceleration, or remedial action can actually be traced and allocated.

Whether the cost presentation overstates the real commercial impact by including unrelated, previously recovered, or inadequately evidenced items.

WHAT A STRONG EXPERT REPORT INCLUDES

Core elements usually expected in independent construction expert reporting

Issue Framing

Define the question, scope, and assumptions.

Evidence Trail

Show the records and data relied upon.

Methodology

Explain how the analysis was performed.

Findings

Set out the material results and observations.

Opinion

State the conclusion clearly and independently.

METHODOLOGY

How we carry out a forensic cost investigation

Our approach is structured to produce a defensible financial narrative rather than a spreadsheet dump. We begin by understanding the contract and the issue frame, then map the relevant records, build the cost trail, test the evidence, examine causation, and report our findings in a form suitable for management, counsel, or formal proceedings.

1. Issue definition and scope

Clarify the disputed theme, claim heads, accounting period, and decisions the client needs to make.

2. Contract and valuation framework

Review how the contract deals with pricing, remeasurement, variations, preliminaries, prolongation, payment, withholding, and supporting evidence.

3. Record capture and cost mapping

Organise the relevant source records and reconstruct the path from incurred cost to claimed value to certified or paid value.

4. Validation and challenge testing

Check rates, quantities, allocations, duplication risk, omitted credits, missing source support, and internal consistency.

5. Causation and attribution review

Assess whether the financial effects are properly linked to the event or issue being advanced.

6. Reporting and strategic recommendations

Provide a clear opinion, issue matrix, evidential schedules, and practical next steps for claim, defence, negotiation, or formal proceedings

EVIDENCE AND OUTPUTS

Records typically reviewed and outputs provided

Typical records reviewed

Executed contract, BOQ, schedules of rates, amendments, and pricing rules
Payment applications, certificates, notices, ledger extracts, and cash-flow records
Variation logs, instruction records, valuation sheets, and measurement back-up
Subcontract accounts, invoices, purchase orders, goods receipts, and plant records
Timesheets, labour allocations, productivity data, and site overhead information
Correspondence, meeting minutes, progress records, and other records relevant to causation

Typical outputs

Forensic cost investigation report or financial opinion memorandum
Issue matrix showing supported, disputed, or unsupported components
Schedules tracing claimed, certified, paid, withheld, and adjusted values
Commentary on duplication risk, omitted credits, and evidential weaknesses
Inputs for claim submissions, defence strategies, negotiation, ADR, and expert reports
Executive summary for management, counsel, or decision-makers

FAQS

Frequently asked questions

What is the difference between forensic cost investigation and ordinary commercial review?

Ordinary review often focuses on administration and current valuation. A forensic cost investigation goes deeper into source evidence, causation, duplication, supportability, and the defensibility of the financial position in dispute.

Can this service support both claims and defence?

Yes. It can be used to strengthen a claim before submission, test a received claim, or build the financial narrative for negotiation, ADR, arbitration, or litigation.

Can Solvix combine this with delay or expert services?

Yes. Financial findings can be integrated with delay, disruption, EOT, quantum, expert witness, and broader dispute-resolution support where the matter requires a joined-up analysis.