A comprehensive audit program offered by McGovern & Greene LLP was prepared for use with typical lump sum and GMP (Guaranteed Maximum Price) contracts with prime contractors and subcontractors. Procedures related to verifying a contractor's "cost of work" (such as direct labor, material purchases and rental charges) are normally applied to cost-reimbursement type contracts.

Our professionals will apply specific task-oriented audit tests tailored to
selected transactions subject to review.

Audit Program Outline:

Bid Review

Contract Review

Risk Assessment

Control Systems Review and Recommendations

Contractor Billing Tests – Progress Billings

• Labor
• Materials
• Equipment (owned and rented)
• Subcontractor charges
• Permits and licenses
• Miscellaneous charges (small tools and consumables)
• Overhead charges
• Contractor fee
• Retainage calculation
• Performance bond and insurance
• Home office charges
• Physical inspection and review of engineering inspection reports
• Travel

Change Orders Pricing Review

• Labor and labor burden
• Labor productivity factors
• Material quantity and pricing
• Indirect cost application
• Subcontractor "buy-outs" verification

Delay and Disruption Claims Examinations

• Control Systems Verification
• Financial Review