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Cost Savings: Study 2

In 1998, the director of construction for the Portsmouth Naval Hospital commissioned a national estimating firm, U.S. Cost, Inc., to evaluate the actual value of a RediCheck review completed for the hospital's major renovation project. U.S. Cost was tasked to develop an "Opinion of Probable Cost" for possible "change orders" based on the RediCheck review. The costs were developed based upon the marked-up documents produced by the RediCheck review.

The conclusions reached by U.S. Cost, Inc. included:

  • Approximately 630 potential RFI's (Requests for Information) were discovered using RediCheck.
  • Approximately 215 potential change orders were avoided by using RediCheck.
  • An estimated $597,418 was saved as a result of the RediCheck review.

U.S. Cost stated in their report to Portsmouth Naval Hospital that "this (cost savings) estimate can be considered very conservative." The construction projects estimated cost was $52.5 million. The review fee was $76,400. The client saved approximately $600,000 in change orders and RFI costs.

This is a Return on Investment of nearly 700%

Some additional facts which make this payback even more significant:

  • The design team was experienced and reputable.
  • The lead design firm was motivated to produce coordinated drawings. They knew that RediCheck would review the work for the owner.
  • The lead design firm uses an established in-house coordination review process on their designs.

The conclusion is that even reputable, experienced design firms that can perform in-house coordination reviews do not uncover the errors, omissions, and discrepancies that the RediCheck Associates can.

Download the U.S. Cost Estimate