Would you buy a house without first having it appraised and inspected? Of course not. If an agency acquires infrastructure without first performing a Cost Reimbursement Review, they assume many of the same risks that you, as a homeowner, would assume in not taking these important steps.
A Cost Reimbursement Review is the process by which an agency verifies the amount they are going to pay a developer for constructing public infrastructure by inspecting the many documents involved in the construction process to determine the actual cost of providing those facilities. The improvements are reimbursed from public funds and therefore an agency must establish that the price being paid is fair and justified.
5 Questions to Consider and Understand Related to Reimbursement Verification
- What is a Cost Reimbursement Review and why is it important?
- What procedures and processes must agencies follow?
- How will you define what is public versus what is private?
- Who should perform the cost reimbursement review?
- Are there any legal issues to consider?
Download this important white paper from Harris & Associates' Municipal + District Finance team Vice President Alison Bouley, PE and Project Manager Anna Tan-Gatue, PE to learn more and help your agency avoid legal and political ramifications.