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Construction Audit Services for Project Owners

McBride Forensic Accounting & Construction Consulting takes pride in our ability to work with every type of project owner and developer and assist them in fulfilling their fiduciary duties to shareholders, investors, boards of directors and lenders. We tailor our services to the specific requirements of our clients. We offer complete auditing services from progress billings all the way through project close-out to make sure that project costs are accurate and that contractors and vendors have not been overpaid.

Assistance in Construction Contract Review & Negotiations

Our experience observing and working with the monetary results of poorly written and vague contract clauses can assist you with contract writing and negotiating. A construction contract review prior to signing improves the language and definitions, identifies problems in the wording of contract clauses, and helps to avoid potential misinterpretations and financial losses during the construction process.

The Right Kind of Experience

We have experience with a wide range of construction projects, including the following:

• Casinos & Hotels
• Multi-Family Residential
• Subway & Rail Lines
• Hospitals
• Healthcare Facilities
• Highways
• Bridges
• Tunnels
• Airports
• Shopping Centers
• Churches
• Convention Centers
• Office Buildings
• Colleges & Universities
• Housing Projects
• Water Treatment Facilities

Pre-Construction Audits

We will review the general contractor's guaranteed maximum price estimate (GMP), proposed labor burden rates, proposed wage and salary rates, and insurance cost rates to determine the accuracy of these items before actual billing on the contract begins. In addition, this process makes contractor personnel much more diligent because they are aware that all contract costs will be audited during the course of construction.

During-Construction Cost Audits

On an interim basis we confirm that the change orders approved are priced according to the terms of the contract and that the change estimates approved for subcontractors have been passed through to them in writing by the general contractor at the same price. Monthly pay applications are also reviewed.

Analyzing Financial Report

Billing Invoice

Post-Construction Close- Out Cost Audits

For the final contract close-out, we verify that all costs billed to the owner are reimbursable according to the terms of the contract and that the guaranteed maximum price (GMP) is not overstated. This helps fulfill fiduciary duties within companies and non-profit organizations. We also determine the allocation of the savings split between the project owner and the general contractor where it is included in a contract. We can also assist the project owner in the calculation of actual or liquidated damages on contracts that have not been completed within the allotted time. Final audits include a detailed review of:

• Owner Change Orders
• Allowance Reconciliations
• Payroll & Payroll Burdens
• Equipment Costs

• Insurance Costs
• Subcontracts & Subcontract Change Orders
• Other Costs Considered Reimbursable By the General Contractor

Claim Audits & Reviews

We evaluate claim documents, audit the contractor's cost records, and review the project owner's documents and correspondence. Together with legal counsel, we review the contract language, verify proper support for all claimed costs, recalculate numbers, interview job site personnel, and assist in settlement negotiations. Contact us to learn more.