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The CRW Mission

Cost Recovery Works, Inc. is committed to providing clients with superior returns by offering proactive project auditing and controls methods geared to reduce project costs, project tax accounting programs designed to minimize state sales and use taxes, cost recovery reviews for projects which are underway or have been completed, and rapid close-out reviews to gain maximum rewards to clients using the performance based fees.

 

Company History

Cost Recovery Works, Inc. succeeds Capital Project Review Services, Inc., launched as a sole proprietorship in 1994 by Al M. Gray after 12 years of service to five Fortune 250 companies as an internal auditor, capital projects auditor, and accountant. During his corporate career Mr. Gray planned, implemented, and directed on-site teams of auditors to provide cost avoidance and cost recovery services. The basis for founding the company was to leverage these proven cost recovery methodologies, which had produced savings of tens of millions of dollars, in the service of clients with a desire to reduce their costs. Capital Project Review Services, Inc. added to this legacy with tens of millions of new financial savings for eight more Fortune 500 companies, international manufacturing, and other large sized clients.

 

In 2005 the firm incorporated as Cost Recovery Works, Inc. (CRW), a Georgia corporation. Mr. Gray is the president of the firm. The firm has proceeded to market review processes which produce vast savings relative to costs of these services.

 

Cost Recovery Works, Inc. provides owners with a variety of capital project planning, control, and review techniques designed to reduce project costs from inception to completion. The objective of the firm is to help you minimize and control the costs of infrequent major projects by maximizing tax benefits, reviewing contractor billings and claims, and by coordinating existing resources within your organization. A concurrent, proactive effort to minimize both project and tax costs is the firmís primary emphasis. Recovery and avoidance of client costs is the firm's primary emphasis.

 

Since the firm was established, some clients have enjoyed millions in savings, others have adopted stronger capital spending controls, and clients recovered large sums from contractors and taxing authorities.

 

Clients

Cost Recovery Works, Inc. is proud to serve a number of Fortune 500 clients in a variety of industries. Clients include corporations in the following industries: pulp and paper, textile, chemical, food, packaging, building materials, forest products, and manufacturing process equipment.

 

The CRW Method

1. Review multiple pressure points to identify likely sources of cost recoveries. Alternatively, the client directs the objective, i.e. capital spending, based on its evaluation of the exposure.
2. Quickly abandon areas with low potential. Minimize work paper documentation to save time.
3. Concentrate on areas with high potential by testing transactions, researching issues, and expanding the scope, if necessary.
4. Identify and quantify recoverable costs. Identify and quantify future savings from alternative processes and methodologies.
5. If there are no material savings or recoveries discovered, quickly halt the project.
6. Establish a schedule and budget for the recovery or cost avoidance effort.
7. Determine whether the client has the resources to perform the effort, the work should be performed by contract accounting personnel, or CRW should complete the recovery effort.
8. Extract data into a database, allowing ready reclassification, restatement, and summarization of the affected transactions.

 

How does CRW produce such an attractive savings to cost ratio?

Capability to quickly assess the potential for recoveries. Experience allows testing for multiple factors during a single pass of the transactions and records. Hours are dramatically reduced as a result.
Emphasis on proactive measures achieves quantifiable future savings.
Unproductive reviews are swiftly terminated at low cost to the client.
Utilization of contract auditors and temporary accounting clerks to lower average hourly costs.
Proven techniques developed and adopted in the service of great companies.
Reasonable fees with performance incentives insure that the client does not pay for long, unproductive reviews.
Contingency fee reviews are an option.

 

"VIGILANCE BUILDS VALUE"

 

This simple slogan explains the success of CRW, its guiding principles, and why clients benefit. If it is a concept that you share, please give us a call.

 

 

 

 

Process Development

The reason for founding CRW was an increasing progression of capabilities and results for companies:

PHASE

EXPERIENCE

RESULTS

I.

1983 to 1985

Construction Auditing for a $50 million chemical plant

Savings in excess of $150 per hour. Key finding a $125,000 refund from a previously undetected overcharge. The owner saved more than $1,000,000 on all affected projects.

 

II.

1985-1991

On-site Capital Project Auditing of all project and facility functions for a $1 billion paper mill.

Project audit team produced savings in excess of $200 per hour - conservatively stated. Total savings ranged from a proven minimum of $6.5 million to $12 million including avoided costs.

 

III.

1992-1994

Multiple Site Capital Projects Auditing for a textile manufacturer with annual capital spending of $300 million

Project audit team produced savings in excess of $400 per hour - conservatively stated. Total savings were a minimum of $3 million.

 

IV.

1994-2004

Capital Project Review Services leverages cost recovery measures into even greater savings.

Savings and cost recoveries average in excess of $800 per hour, proving that capital projects auditing is a sustainable producer of savings to clients.

 

V.

2005-Present

(and future)

Cost Recovery Works, Inc., founded to emphasize cost recovery successes, expands into property development work and regulatory projects.

The company offers reasonable hourly rates for new cost recovery work, incentive fees to maximize client returns, and contingency fees where the client lacks funding or desire guaranteed returns.

 

 

The IMPACT of: "Oh, by the way..."

The primary purpose and perceived value in engaging Cost Recovery Works, Inc. often becomes secondary to other more critical issues discovered during our efforts. The principal reason for CRW's extraordinarily high returns is the impact of these unintended beneficial consequences. The initial review session is frequently concluded with the client hearing "Oh by the way, you should really take a look at this other issue, it will save you money."

 

INITIAL SCOPE

A CRW was engaged to restate the tax accounting for a project in anticipation of requesting a use tax refund of approximately $425,000.
B CRW was engaged to restate the tax accounting for multiple projects in an effort to recapture an unknown amount in sales/use taxes
C CRW was engaged to assist the client with launching a proactive project auditing function for its $130 million project.
D CRW was engaged in a multiple year development project culminating with a $30 million retail center

 

SECONDARY ISSUE

A Several other projects were identified which had been thought to be taxable by the client. A tax law change and obscure rulings were researched which supported exempting some of these other projects.
B During the review of the project accounting for the projects it was determined that the client had sustained duplicate billing for certain subcontracted work.
C The preliminary cost accounting systems review indicated that the contractors' systems were inadequate to perform the owner's multiple cost system objectives for the project.
D New regulations at local and state level threatened the project

 

RESULTS

A The client was able to increase its refund request to $1.4 million, eventually recovering approximately $1 million.
B The client has recovered more than $400,000 to date in addition to the $500,000 in tax recoveries.
C The contractor took immediate action to revise its systems for the project and gained approval from the owner for additional resources. The project was completed ahead of schedule and under budget.
D The owner completed development with multiple cost and regulatory concessions. Estimated benefit from the work was $1.2 million.

Let CRW make your capital reappear!

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