Frank Regnery
Frank Regnery, P.E.
Principal
Construction Consulting
  • New York

Mr. Regnery advises clients on a range of topics including risk management, project controls, change management, project scheduling, project due diligence and cost assessments, process improvement, troubled project workouts, change order negotiations, dispute avoidance and the development or defense of construction claims.

Mr. Regnery has over 30 years of experience in the engineering and construction industry, including significant dispute resolution and litigation support work. Mr. Regnery has analyzed a wide variety of construction projects involving delay, damages, cost overruns, cost recovery audits, construction fraud, unforeseen site conditions, change orders, inefficiency, contract terminations, and project management issues. These projects have included commercial and heavy industrial projects, for both private and public sector owners. Mr. Regnery’s construction project experience includes power, offshore and onshore oil and gas facilities, manufacturing and process plants, pipelines, water treatment facilities casinos, hotels and resorts, vertical construction, commercial structures, residential structures, and light rail. Mr. Regnery’s clients have included corporate entities, public agencies, financial institutions and investors, contractors and subcontractors, architectural and engineering firms, insurance carriers, and attorneys.

Prior to joining Exponent, Mr. Regnery was a Partner in the New York office of Deloitte Financial Advisory Services LLP’s, Capital Projects Consulting Practice and the Capital Project Consulting practice for KPMG, LLP. At both Deloitte and KPMG, he concentrated on construction and real-estate matters, with a strong emphasis on advising clients in dispute resolution, project delivery, financial due diligence, cost recovery audits, and fraud investigations. Mr. Regnery began his career as a structural and soils engineer for Foster Wheeler Energy Corporation. He has more than 17 years of construction industry experience prior to becoming a consultant. Mr. Regnery construction experience includes water/waste water treatment plant construction, down-stream petroleum and defense industry associated construction.

Mr. Regnery has provided expert testimony in various dispute resolution forums, including U.S. Federal Court, various state courts, the American Arbitration Association and the International Chamber of Commerce. Additionally, he has assisted clients in numerous alternate dispute resolution processes, and has participated in the resolution of numerous construction disputes.

Mr. Regnery has consulted on numerous troubled construction projects and has managed the shut down or takeover of several of these projects. He has significant experience advising clients on early case assessments and claims preparation. His litigation experience includes delay, damages, and cost recovery/closeout audits. Additionally, he has led numerous cost/recovery investigations resulting from either whistle blower complaints or allegations of contractor overcharging. Many of these investigations led to significant monetary recoveries.

CREDENTIALS & PROFESSIONAL HONORS

  • B.S., Civil Engineering, University of Connecticut, 1976

LICENSES & CERTIFICATIONS

Licensed Professional Civil Engineer, Commonwealth of Pennsylvania

Professional Affiliations

Member, American Society of Civil Engineers

Associate Member, American Bar Association

Member of Standards Committee, American Society of Civil Engineers-Schedule Delay Analysis

Project Experience

Engaged by a major US Oil company to evaluate approximately $110 Million in delay and disruption claims, submitted as change order requests, by a contractor constructing an 87 mile offshore pipeline, associated subsea structures and pigging platforms. The evaluation included a critical path delay analysis and reviewing the merit of the contractor’s claimed costs.

Engaged by a major US Oil company to analyze a contractor’s more than $100 Million delay claim associated with the development of a deep ocean offshore oil field off the costs of Africa. The work included a schedule delay analysis related to an undersea pipeline. Additionally, the work involved developing a counter claim related to the contractor’s excess costs, which required the development of a labor inefficiency claim of the topside modification work. The counter claim totaled more than $40 million.

Assisted an international engineering, procurement, and construction contractor to determine the proper loss reserves associated with a design-build fixed-price contract to develop a multi-billion dollar fixed price offshore oil production project.

Engaged by the owner/investors of a large ethanol production facility for arbitration support services related to the contractor’s claim of a differing site condition, which resulted in additional deep soil stabilization and alleged acceleration costs. Direct costs were reviewed in connection with project documentation to determine the nature of the costs and their association to the alleged unforeseen condition. The analysis performed included analysis of the geotechnical reports, soil borings, and daily drilling logs to identify varying site conditions and their impact on the schedule and contractor’s costs. Performed a delay analysis to determine the cause of project delay, the associated costs, and the manpower impact caused by schedule compression.

Engaged by a global manufacturing and engineering company involved with the construction of a water filtration plant, which is one of the largest public sector infrastructure projects in the US. He was engaged to setup and managed its claims and change order management team. Work included setting up a claims management team at the project site and staffing the team with several claims management and scheduling professionals. Work also included developing a claims strategy and the preparation of a time extension request, which included preparing a detailed delay analysis and request for time extension and conducted a cost review and expected profit analysis of a waste water treatment facility located in Russia. A design-build contractor claimed it was wrongfully terminated prior to the actual start of construction work and therefore was entitled to its expected profits. Analysis included a review of the facts related to the contractor’s termination to determine if the contractor’s design could have met the contractual design performance requirements and if built, what the contractor’s probable cost at completion would have been.

Engaged by an EPC Contractor involved with the construction of a 350 MGW combine cycle power plant located in the Northern Territory of Australia. The project experienced significant cost overruns and delays. Worked with the client’s change order team to identify and prepare claims and time extension request related to engineering scope changes that were improperly document during the course of the project. The work involved reviewing all facets of the design to identify how the project scope in some cases more than doubled. Additionally, participated and assisted the client in settlement discussions.

Engaged by the owners and investors of a $2.5 billion entertainment and resort development project to investigate a construction budget overrun of more than $125 million. Led a team of professionals to closeout more than 80 trade contractors and recovered overbilled costs and other disallowed charges.

Retained by counsel representing a construction manager to provide expert witness testimony in a New York State Supreme Court action, as to the damages related to the deconstruction and decontamination of a high-rise building located in Lower Manhattan. The plaintiff’s damages exceeded $100 million and the defendant’s counterclaimed was more than $200 million.

Retained by a New York State agency in defense of approximately $60 million in trade contractor claims related to alleged mismanagement and inefficiencies in the construction of a $30 million library expansion and renovation project. Performed detailed analyses of the daily reports, progress photographs, and other project documentation to prepare a detailed as-built schedule and determine causation of project delays. Analyzed the work product prepared by experts for the opposing counsel, including the support for their total cost claim. Assisted Counsel in the preparation of witnesses and provided real-time support to Counsel throughout litigation. Provided expert witness testimony in the matter in New York State Supreme Court.

Investigated the activities associated with two major rail projects in South American, that were funded through The Export-Import Bank of the United States, regarding allegations of violations of the Foreign Corrupt Practice Act. Work involved working closely with outside counsel and meeting with several US enforcement agencies.

Engaged by counsel representing a real-estate investment fund, to assess the cost overruns associated with a $900 million mixed use development project. The investment fund was informed by its development partner that there were potential cost overruns on a mixed-use commercial development project in New York City. The development project included 350 condominium units, a Big Box Retail Mall and a parking structure, with total construction costs in excess of $900 million. Prior to meeting with its lender to ensure continued funding, the client had to quickly assess the actual costs incurred to date, estimate the cost to complete the project, and confirm whether cash disbursements were completed as reported. The engagement team identified significant misappropriations of project funds, including fictitious purchase orders, fictitious change orders, excessive pricing, fictitious equipment rental costs and other material financial misrepresentations.

Engaged by a specialty contractor to prepare a damage and delay claim related to the installation of more than 1000 deep piles that supported the approach of a major New York City East River Crossing. The analysis included the review of the drilling logs to identify productivity variances related to unforeseen obstructions and soil conditions.

Completed a cost investigation of a $450 million fiber optic network in Europe that experienced more than $100 million in unanticipated costs.

Engaged by the audit committee of a major international pharmaceutical company to help determine the cause of a more than $1 billion cost overrun associated with the construction of a bio-pharmaceutical plant and to help determine the estimated cost at completion.

Provided litigation support services related to a builder’s risk insurance matter for a large general contractor in defense of a $50 million claim for property and delay damages suffered on a high-rise mixed-use resort development project. Performed a schedule analysis to determine the causation of the project delay, highlighted areas of contemporaneous delay, and documented overreaching damages being claimed by the owner. Presented findings that substantially decreased our client’s maximum exposure and aided the client throughout mediation efforts, which culminated in a successful settlement.

Analyzed fraudulent billings and a contract termination involving the construction of a Manhattan mixed-use development project. Provided expert testimony in both U.S. Federal District court and before the American Arbitration Association.

Engaged by the Corporate Real Estate Department of an international financial institution to assist in the investigation of alleged fraudulent activity and to perform project management oversight of numerous ongoing projects, including a high-rise office building, trading floors, and several data centers. Reviewed all payment applications and change orders, assisted the client with the termination of one contractor involved with more than $800 million dollars of construction contracts, including the retrofit of a high-rise office tower in a major Midwest market and the construction of two data centers. Additionally, assisted the client with the closeout and settlement of a $400 million project. The work also included a review of project controls, preparation of a benchmarking study of data center costs, and monitoring of project expenditures, which included the review and approval of all trade contractor invoices and change orders. 

Engaged by the audit committee of a public company to investigate allegations of overcharges and fraud associated with a $100 million fiber optic network construction project. Assisted the client with negotiations of several contractors to recover identified overcharges and fraudulent billings, including billings for work that was never performed.

Engaged by counsel to assist a major global mining firm with the investigation of the construction costs and businesses transactions related to a real estate development remediation effort performed at a legacy manufacturing site. The work included a forensic audit of the incurred costs, review of geotechnical analysis, computer analytics of accounting systems, and the public record searches of various entities and persons involved with the project.

Analyzed an electrical subcontractor’s inefficiency claim caused by the drywall contractor’s piecemeal room completion of a major hotel project.

Investigated construction fraud involving an employee of the facility construction department of a major pharmaceutical company. Work included a quantification of the money misappropriated, investigation of vendors and suppliers involved with the fraud, and a review of the company’s internal construction procurement controls.

Engaged by the Inspector General of a major metropolitan transportation authority to perform a risk assessment of a multi-billion dollar capital construction project and develop an internal compliance audit program to monitor the risks.

Engaged by a major publisher to provide financial oversight of a mixed-use 80-story high-rise building in New York City. The project included retail, office, and residential space. Work included reviewing all project expenditures and determining the proper allocation of cost to the various owners of the project

Engaged to provide expert witness testimony involving the defense of a Big Four accounting firm involved with the program oversight of eight Tier IV data centers and the firm’s alleged failure to find fraudulent billings and contractor overcharges.

Engaged by the Office of Management and Budget, to reviewed New York City’s Board of Education’s $7B school construction capital program, which experienced a more than $2.5 billion overrun. The engagement included a review of all aspects of the program, from initial conceptual budgeting to final acceptance in order to identify the cause of the budget overrun and identify and quantified the budget overruns attributable to the various phases of the Capital Plan’s execution, including planning/programing, design and execution.

Engaged jointly by the Construction Committee of a major New York City museum and its contractor, to perform an independent analysis of damages and delays related to the construction of a major museum project. Served as part of a project neutral team led by outside counsel to assist in resolving the dispute between the museum and the contractor. Work included meeting with the parties and participating in settlement discussions.

Engaged by counsel to analyze a delay and disruption claim relating to the construction of a theme restaurant and retail store in Florida. Provided expert witness testimony in an American Arbitration Proceedings.

Engaged by counsel to analyze a delay and disruption claim relating to the construction of a shopping mall. Provided expert witness testimony in an American Arbitration Proceedings.

Other Litigation Support and Investigation Experience

Engaged by a public authority to assist with the conversion of a fixed-price $40 million electrical prime contract to a time and materials contract. Work included the review of the contractor’s direct costs, allocation of corporate charges, and home office overhead.

Analyzed a contractor’s $28 million wrongful contract termination and lost profit claim as well as provided expert testimony in an American Arbitration Association proceeding.

Analyzed damages resulting from the design and construction of a failed amusement park ride. Provided expert testimony in an International Chamber of Commerce arbitration proceeding.
Analyzed an electrical subcontractor’s inefficiency claim stemming from the construction of a flight support building and provided expert testimony in an American Arbitration Association proceeding.
Analyzed a “termination for convenience” claim for the State of New Jersey from one of its construction managers.

Analyzed the completion costs of a state mental health facility. The analysis was used to help a surety recover several million dollars in excess completion costs.

Engaged by the Chief Financial Officer of a major insurance company to conduct a closeout cost assessment of a $100 million capital construction project.

Conducted a post-completion cost analysis of a $143 million construction project for an international financial institution that was significantly over budget.

Investigated accounting irregularities related to revenue recognition and reserved costs involving a telecommunication construction contractor’s overseas affiliate.

Performed a cost recovery investigation of a $200 million capital construction program for a major telecommunication company which outsourced a large portion of the construction management of its capital construction program.

Investigated and subsequently took over the completion of a hospital for a surety whose principal was “terminated for cause” by a state agency. Engaged by a surety to investigate the costs associated with a terminated tile subcontractor’s completion cost of four subway stations in order to reach a settlement with the prime contractor.

Engaged by a surety to investigate a contractor’s default, determine the amount of the loss, and assisted with the subsequent takeover of the completion of a 100-unit housing project. Engaged by the audit committee of a university that was about to undertake a major capital construction program to review the internal controls and procedures of its facilities department.

Led an engagement team to review the controls and procedures of a major health care system’s real estate and facilities department. Performed a benchmarking study to determine similar costs for other city healthcare projects to determine if the client was paying above market costs for its construction projects. Determined the reason for this variance and provided a recommendation on how to correct any deficiencies.

Additional Schedule Analysis

Analysis of a $12 million delay and disruption claim related to the construction of a commuter rail maintenance yard.

Analysis and preparation of a delay and disruption claim related to the construction of a $30 million government office complex.

Analysis and preparation of a delay and wrongful default claim related to the construction of a university student center.

Analysis and preparation of a delay and disruption claim involving the construction of a $12 million condominium project.

Analysis and preparation of a delay and disruption claim involving the construction of a $30 million school construction project.

Analysis of a multi-million dollar delay and disruption claim related to the construction of a prison.

Analysis and preparation of a delay and disruption claim related to the renovation of a historic armory delayed by the discovery of lead paint and asbestos.

Analysis and preparation of delay claim and request for a time extension involving the construction of a high-rise office building.

CREDENTIALS & PROFESSIONAL HONORS

  • B.S., Civil Engineering, University of Connecticut, 1976

LICENSES & CERTIFICATIONS

Licensed Professional Civil Engineer, Commonwealth of Pennsylvania