A construction cost audit can result in savings, while assisting owners and developers in meeting stakeholder requirements. Whether the owner/developer has entered into a cost plus fee contract or a lump sum/fixed price contract, the risk of overcharges is the same.
Most overcharges are due to misunderstandings between the owner/developer and general contractor, oversights by supervisors, and misinterpretations of the contract due to the significant volume of documents involved in the management and administration of a construction project.
Construction Cost Audit Objectives
We can help by performing a construction audit on your project. The objective of a construction audit is to determine if:
- Costs incurred have been billed to the owner/developer in accordance with the construction contract.
- Change orders are appropriate based on the supporting documentation.
Our construction audits focus on a tailored review of construction documents, including correspondence, bids, billings and change order documentation.
Construction Cost Audit Benefits
Construction audits are not intended to take the place of a project manager or internal audit. We supplement the work of the project manager and internal audit by documenting our review of the supporting documentation throughout the project. We support the project manager by verifying cost details and evaluating billings.
Our SharePoint portal documents our work and provides the general contractor’s accountants with information about missing cost details. As a result, an accurate record of open items is maintained.
A construction audit is a cost effective way of uncovering potential overcharges and generating the documentation necessary for you to seek cost recoveries. We would be pleased to meet with you to assess your project and discuss how a construction audit could benefit your company.