Every construction project is a complex, sometimes
confusing, process governed by complicated contracts reflecting multiple
relationships in several tiers. Although buildings have been built for
thousands of years now, no two of them are alike. Construction processes
carry an inherent variety of risks at each stage of the project. It is
impossible to eliminate all of them, but your goal should be to manage and
control construction risks efficiently.
The Construction Activity Audit Services provided by
McGovern & Greene, LLP are designed to provide you with greater control over
your construction dollars. Our team of experienced consultants, seasoned in
the construction industry, is capable of identifying risks in every stage of
the project – from planning, through construction to project close-out. Our
investigative procedures will detect a wide variety of contract abuses both
in financial and scope areas.
The Construction Activity Audit will bring benefits
regardless of the type of contract used. Lump-Sum contracts carry scope
related risks while with Cost-Plus or Time and Materials contracts risks
shift towards cost components of the project. Our audit program will address
specific risks and can be applied in the following stages:
Pre-Construction
– We will recommend a system of
controls including contractor selection criteria, pay application, and
change order approval process. We will verify contractor’s data, recommend
contract language, and audit sub-contractor “buy-out” results.
Construction
– We will provide routine or ad-hoc
pay application audits, change order scope and price verification,
cumulative cost components tracking as well as support documentation audit.
Reconciliation of project expenditures will ensure that duplicate billings,
duplicate payments, and/or duplicate scope items are detected in a timely
manner. Interim audits of selected data on an as-needed basis can be an
effective tool for ensuring full compliance with the contract documents.
Post-Construction
– We will conduct a final
audit of the project independent of the owner’s close-out procedures. This
audit will give you the opportunity to evaluate records and documents
normally not seen during routine operation processes.
McGovern & Greene,
LLP will work with your project
management and/or internal audit professionals in a team environment to
deliver best results most efficiently. The Construction Activity Audit
Services we offer are further enhanced by our recognized expertise in
government contracting, fraud investigation and prevention, construction
arbitration as well as claims preparation and evaluation.
