Accounts know nothing about running construction projects. If you want to control costs, use fixed price or GMP contracts instead of cost plus or T&M. You also

Accounts know nothing about running construction projects. If you want to control costs, use fixed price or GMP contracts instead of cost plus or T&M. You also need to make sure your engineers are accurately representing the work scope in the RFP so you don’t get change ordered to death. That being said, there is definitely corruption in the NYC construction market that doesn’t exist in the market I operate in, and I’ve read articles specifically about sandhogs inflating contracts and so on. Their union contract could possibly specify certain positions being required that are extraneous to the work being performed that would inflate the cost of the project and line the union’s coffers. Net margins on a 9 to 10 figure construction contract should be around 3-5% in a competitive market. FWIW I am a construction management professional.