Forensic Accounting

Delay in Start-Up (DSU) & Soft Costs

J.S. Held’s Inaugural Global Risk Report Examines Potential Business Risks & Opportunities in 2024

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We combine financial expertise with technical prowess to help clients determine Loss of Gross Earnings, Loss of Rental Income, and Soft Costs included in Delay-in-Startup (DSU) policies or Delay-in-Opening coverage provisions.

Our forensic accountants leverage the technical expertise of our Building Consultants, Construction Advisory Practice, Surety Practice, and Builder’s Risk (CAR/EAR) Practice to track the incurred hard costs associated with the project during the period of restoration, quantify the cost of repair, identify and calculate Soft Costs, and determine any business interruption losses.

Our Services
  • Delay in Start-Up (DSU) Analysis
  • Gross Earnings Under the Policy – Review, Analysis & Quantification
  • Litigation Support & Expert Witness Testimony
  • Loss of Rental Income Under the Policy – Review, Analysis & Quantification
  • Project Documentation Analysis
  • Soft Costs Under the Policy – Review, Analysis & Quantification
Determination of Gross Earnings

We assess how construction progress and the overall project’s substantial completion were impacted by the loss. We review the pre-loss schedules, site inspection photos, project timelines / critical path, daily logs, and other project documentation to determine when the project was scheduled to finish. Using this information, we assist clients in determining the loss of gross earnings from a delay in opening or project completion.

Determination of Loss of Rental Income

We help quantify loss of rental income during the repair period when property damage has occurred. For start-ups, our forensic accountants quantify the loss of income by examining comparable businesses or market reports. In the case of projected rental income for a business, our forensic accountants take into consideration the current economic conditions at the time the project was planned.

Determination of Soft Costs

Our team helps quantify the soft costs that are considered under a Builder’s Risk policy and are affected by the length of the delay. These may include certain economic losses that are not specifically involved in repairing the damaged property. Soft Costs may include, but are not limited to:

  • Additional Insurance
  • Additional Interest
  • Advertising Expenses
  • Architect Fees
  • Auditor’s Fees
  • Bond & Permit Fees
  • Legal & Accounting Expenditures
  • Other Administrative Costs
  • Real Estate Taxes
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