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Forensic and Investigative 
Construction Project Management Services

Chasan Nicoletti's expertise in the areas of Development Management, Construction Project Management and Owner's Representation has expanded into the area of providing forensic analysis of Projects which have encountered difficulties.

CNI's specific expertise is unique in the field of Expert Services in that it focuses on the complex mutually dependent duties, responsibilities and actions required and performed by all team members including the Architects/Engineers; Specialty Consultants; Vendors as well as the General Contractor or a Construction Manager, whether as "Constructor" or as "Agent", as well as the area of Development and Construction Project Management, and Owner Representation/Development Management. From the discussions with the legal representatives of both of the following cases discussed below (Litigation and Arbitration), the availability of expert witnesses in this particular area is next to nil. In fact, the arbitration case representatives searched for months before being directed to us by one of the defendants in the Litigation case!

Mr. Chasan was an expert witness on Construction Project Management for the plaintiff in the United States District Court, Southern District of New York, for Central Synagogue in its $45+ million Liability trial against a Major Construction Management firm, which was resolved with a significant decision for the client, based, to a major degree on Mr. Chasan's testimony.

The Synagogue was almost completely gutted by a fire in 1998, during a relatively minor Capital Improvement Project involving mostly HVAC and electrical upgrades. As the property is a Federally listed Historic Landmark Building, the case was mandated for a jury trial in the United States District Court, Southern District. The trial was in two parts, first to establish liability, and the second to deal with the replacement and restoration costs.

Mr. Chasan's findings and testimony focused on the duties and responsibilities, and the breaches of those duties of the Construction Manager as Consultant to the Owner.

As the CM had been providing these services to the Synagogue over a period of five years, in a multi-phased Capital Improvement Program, Mr. Chasan had to review 5-years of records, containing over 18 banker's boxes of records, 7,000 pages of deposition, hundreds of Construction Documents including Working Drawings and Specifications, and multiple Owner-Contractor contracts.

Chasan's findings, now a matter of public record, were that the CM was acting as an Agent of the Owner and had failed in its duties to manage the construction project, and was the proximate cause of the fire. This was verified by the jury, who found that the CM, one of the two prime contractors and one of his subcontractors were 95% liable for the fire, with the CM apportioned 50% of the total responsibility.

Chasan was able to demonstrate to the jury that although the CM attempted to dissimulate their role and responsibilities with the use of such words as "consultant", "assist" and "advise" in their contract; that in their actions as well as their specific contractual duties and including their assumed authority, they were indeed in charge of the construction activities and were responsible as an Agent, as well as a "Constructor" and were directly liable for the fire.

Mr. Chasan is also acted as expert witness for Coty, USA as claimant in an American Arbitration Association proceeding currently underway for an approximately $7 million dispute against the respondent.

CNI has performed Forensic and Investigative Project Management Analyses for clients such as Max Capital Management and Oliver Wyman, resulting in negotiated reductions of consultant's and construction costs as well as investor requirements' satisfaction.

In the lessons learned during Mr. Chasan's 35 years experience in the profession, and the his recent experience as an “Expert” and Forensic Project Analyst Services, he has found three root causes of overall project failures:

1. The absence of, or minimal, Project Management methodologies, whether provided by a knowledgeable owner or a designated professional Project manager.

Project Management is critical to the flow of any project, be it the manufacture of an aircraft or the construction of a building. Just because it is composed of elements that the “lay” person is familiar with (such as bricks or windows) doesn’t mean that the assembly of these components into a complex multi-disciplinary assembly of those components makes it a “slam dunk”. To manage a design/construction process takes time and dedication, as well as training and experience. The payback can be multiple times its initial cost.

2. Misallocation of proportionate time and resource allowances for Pre-Construction activities (design and planning).

Far too often, the exigencies of the project induce the team, specifically ownership, to reduce the design and planning time to an inappropriate and disproportionate time frame, thereby impacting negatively the smooth flow of the construction process. The adage of “a dollar in planning costs saves five dollars in construction costs” is forgotten too often.

3. Miscomprehension of the exact role, responsibilities and the “fiduciary”  “loyalties” of the Constructor entity.

Owners are consistently led into believing that the CM is “coordinating and managing” the overall project and worse, that the CM watching out for the client’s interests first and foremost. The CM normally does watch out for the client’s interests, but only to the extent that it does not negatively impact the CM’s fiduciary role to his own company. For a more detailed explanation of this particular issue, see our article on “General Contractor; Prime Contractor; Sub-Contractor; Construction Manager........…what's in a name?”.

If, after all due caution, a project should encounter difficulties which might lead to arbitration or litigation, our Forensic Project Management Services can greatly assist in analyzing the situation and preparing the correct and appropriate response.

Chasan • Nicoletti Inc. is an Owner's Representative firm providing Capital Program Project Management.  It was formed in New York in 1985 by Alan D. Chasan and has completed many projects for Owners and Tenants alike in its 16-year history.  CNI has completed over $175 million in Capital Improvement Projects Management in the U.S..  Our staff is thoroughly experienced and qualified to provide PM services and maintain CNI's ethical and professional level of protecting Owner's interests.