Construction Audit Services Offered to the Construction Project Owner.......
Assist in Construction Contract Review & Negotiations
Our experience in seeing and working with the monetary results of poorly written and vague contract clauses can assist you with contract writing and negotiating with the contractor. A construction contract review improves the language and definitions, identifies problems in the wording of contract clauses, and helps to avoid potential misinterpretations and losses from occurring during the construction process.
Pre-Construction Audits
We will review the general contractor's guaranteed maximum price estimate, 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. This process eliminates many disputes resulting from inaccurate billings that occur when a pre-construction audit is not performed. 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 contruction.
Review Monthly Pay Applications
To eliminate potential problems and disputes at the end of a project, we review the monthly pay applications from the general contractor and subcontractors to ensure that the costs billed to the owner are reimbursable per the terms of the contract and that the contractor does not bill for more than what the actual costs are to date.
During-Construction Audits
We review on an interim basis that the costs billed to date are reimbursable according to the terms in the general contract and that the guaranteed maximum price is not being artificially inflated. We confirm that the change orders approved to date 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.
Post-Construction Audits
As of the final billing, we verify that all costs billed to the owner are reimbursable according to the terms of the contract and that the guaranteed maximum price is not overstated. Final audits include a detailed review of owner change orders, allowance reconciliations, payroll and payroll burdens, equipment costs, insurance costs, subcontracts and subcontract change orders, and all other costs considered reimbursable by the general contractor.
The final audit is used to determine the actual construction costs and the verified guaranteed maximum price to be used in determining the allocation of the savings split between the project owner and the general contractor.
We can also assist the project owner in the calculation of actual or liquidated damages on contracts that have not been completed within the alotted time.
Claim Audits & Reviews
We can evaluate claim documents, audit the contractor's cost records, and review the project owner's documents and correspondence. Working with legal counsel, we can review the contract language and documents, verify proper support for all claimed costs, recalculate numbers presented in claim documentation, interview job site personnel, and assist in settlement negotiations.