Audit & Consultancy
Construction Audit
Billing Cost Audit & Project Consulting
Our team of experts consult and advise on all processes associated with your construction projects, to help you achieve effective project governance and cost control. We specialize in construction audit and bringi significant experience and expertise of all types of construction contracts and processes which can be far more technical than those encountered in other areas of audit. We advise on the bidding process, contracting, vendor due dilligence, billing, change management and project closeout. We audit individual contracts or project portfolios to help you control and mitigate risks.
A successful project involves more than cost. Time, quality, scope, function and safety are other key components of project sucess. Effective project governance considers all these factors. Our understanding of how these components can impact a project, and ultimately cost, enable us to deliver audits that will increase your chances of success. Auspicium has a unique methodology, Construction Audit Risk Evaluation (CARE)TM, to facilitiate this process.
Often owners rely on architects, engineers or project managers for financial control. We dive deeper into your construction costs and processesto supplement the work of these professionals by providing an indepenndant comprehensive review of project governance, financial processes and tranasctions for your construction project. We can review contractor billing to identify potential overpayments, errors and other potential recoveryopportunities. We will work with your general contractor to assist in the recovery of amounts due, if you decide to pursue recovery. This process seldom results in legal action as most contractors will readily address legitimate mistakes.
Out team is made up of qualified accountants, Certified Fraud Examiners and Project Management Professionals.
Capital Projects
Construction of new facilities from buildings to infrastructure can be amongst the most significant costs an organization can incur. Failure to deliver the project can result in major operational issues. Having the appropriate governance structures in place at the start of the project is essential to ensure success.
Auspicium is experienced in ensuring projects are alligned with strategic goals, effective project management structures are in place and your capital investment is fully protected.
Our team has experience of auditing data center, medical, office, transport, infrastructure, distribution centers, mining and retail. We have worked in US, Canada, Mexico, Middle East and Europe. Our experience spans both the public and private sectors.
Auspicium can help you regardless of location.
Fraud & Construction
Fraud can inflate the cost of construction projects. While most potential recoveries and errors are the results of mistakes and accidents, fraud can be an issue. Frauds that may arrise include:
- Bid Rigging
- Ghosts on the payroll
- Substandard Materials
- Excess or duplicate billing
IIt is important to be aware of the types of fraud that can occurr to implement effective controls. Auspicium has developed a guide to construction fraud that can be downloaded from our publications section. This is particularly important for oversees projects where the Foreign Corrupt Practices Act is a regulatory concern.
One of the most effective controls to prevent fraud is a fraud hotline. Most contractors or workers actively want to prevent fraud. A hotline acts as both a detterent and means to detect fraud. Another method of detection can include the use of data analys.
Contract Types
The American Insitute of Architects (AIA) has a standard form of contract that is often used as a template. This form of contract is, in our opinion, weighted in favor of the contractor.
Types of pricing arrangements often encountered include:
- Lump Sum
- Time and Materials
- GMax (garunteed maximum price)
- Cost Plus
- Design Build
- Construction Manager (CM) at risk
- Fixed and Unit price
All contract types can and should be audited. It is important to ensure a right to audit clause is present in your contract. Audits can be completed at any time, but ideally before final payment is made. The right to audit usualy extends to 36 months from final payment.
