Effective Auditing Of Construction Activity

This two-day course covers proven construction audit strategies and techniques to enhance your organization’s ability to effectively audit and control construction costs. Attendees will learn “how-to” effectively establish and implement audit coverage to achieve “risk-based” cost avoidance and/or cost recovery results.

Effective auditing of construction activity is one of the more significant challenges facing most organizations. This two-day seminar provides auditors with the ability to look beyond their traditional auditor role by providing them with insight on how to partner with their management team conduct effective audits of their organization’s construction activity.

This two-day seminar provides auditors with specific “how-to” construction audit techniques and other industry specific detailed information which will help them identify and develop potential cost avoidance and/or cost recovery opportunities.

Familiarized training:  all of our construction related in-house training includes preliminary familiarization with customer example project documents. 

When we familiarize a course, we take time to review examples of your project documents including construction contracts, change orders, contractor invoices, etc. This review helps us to better address the specific training needs of your organization and your project.

Course Summary:

• Introduction to Effective Auditing of Construction Activity
  • Audit objectives related to controlling construction costs
  • Project team roles and responsibilities
  • Delivery systems – fast track, design build, conventional
  • Contract procurement methods, types, and phases
• Cost Plus and Time and Material Contracts – Typical Overcharges
  • Design contract billings for time and reimbursables
  • Billings for personal computer and/or mainframe computer time
  • Construction contractor and/or construction manager billings for labor and labor burden
  • Billings for contractor-owned equipment, third-party equipment rental, expendable tools, equipment and consumables, and material used during construction
  • Transactions dealing with subcontractors
• Auditing Construction Change Orders
  • Typical overcharges in lump sum change orders
  • Mechanical change order – discussion exercise
  • Electrical change order – discussion exercise
  • Change order labor and labor burden pricing
• Auditing Lump Sum or Unit Price Contracts
  • Quality and scope of work overcharges
  • Substitution of materials or methods
  • Not performing required services
  • Not installing proper quantities
  • Special types of lump sum contract overcharge situations
  • Adjusting allowances
  • Required bonds and insurance
  • Improper charges for sales tax
  • Special unit price overcharge situations
  • Excessive quantities billed
  • Improper measurement method used
  • Inaccurate measurements
  • Billings for excessive quantities actually performed