Construction audit services grew in popularity with the boom in real estate construction. It is likely construction audits will stay in high demand as general contractors strive to streamline costs and save money.
Vast sums of money are spent at a frantic pace where construction is concerned. Coupled with the "many cooks in the kitchen" phenomena inherent in the building cycle (project managers, architects, not to mention subcontractors), it's easy to see how analyzing costs and expenditures with a fine tooth comb poses a challenge. Experienced construction auditors can help by reviewing project cost details, analyzing alternatives and evaluating billings.
Construction audit programs not only recover lost funds but help prevent future losses by carefully reviewing internal controls and accounting methodology. Consider the following when selecting a construction audit firm.
1. What type of construction auditing do you need? Construction audit firms sometimes have areas of specialty that they focus on.
2. Do the construction audit programs specialize in your line of construction?
3. Does the construction audit service have a good reputation?
Determine which of the available construction audit programs meets your needsConstruction audits can be performed before or after a project is completed. Auditing before construction begins can help verify project details and provide analysis of alternatives. A closeout audit after a project is complete can evaluate past billings and identify over-billings.
Make sure the construction audit programs specialize in your fieldEach construction project is unique -- and building a bank is very different from building a hospital. Make sure your choice of an auditing firm is skilled in your line of construction.
Familiarize yourself with the past successes of construction auditorsMany construction audit services list case studies detailing where their audits saved money and reduced project costs.
- Many lenders, insurers, and even brokers of commercial real estate are considering environmental construction audits as a means of controlling their liability for environmental contamination. When evaluating construction audit programs, see if they have licensed or board-certified professionals such as professional engineers, certified industrial hygienists or registered architects on staff.