SLIDE 1
Agenda
- Why Construction Audits
- Construction Audit Phases
- Contracts
- Pay Applications
- Closing
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Construction Audit November 2015 Stephen Strohman, Supervisor Brown - - PowerPoint PPT Presentation
Construction Audit November 2015 Stephen Strohman, Supervisor Brown - - PowerPoint PPT Presentation
Construction Audit November 2015 Stephen Strohman, Supervisor Brown Smith Wallace Gail Presswood, Director of Internal Audit Steve Cole, Manager of Internal Audit Agenda Why Construction Audits Construction Audit Phases Contracts
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SLIDE 3
Construction Audits
- Assist project team
- Identify and help manage risk
- Provide feedback on contract and controls
- Help control project costs
- “Third line of defense” in construction projects
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SLIDE 4
Construction Audit Phases
Construction audits usually follow duration of the construction project.
- Planning/Pre-construction
Review bidding, contract, and set expectations Benefits: - Mitigates contract risks
- Cost avoidance
- Provides advice from past experiences
- Construction
Risk assessment & contractor billing review Benefits: - Identifies overspend timely
- Raises awareness and transparency
- Close-out
Evaluate total costs, and verify key contract requirements Benefits: - Ensures contract compliance and deliverables
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SLIDE 5
Contract and Bid Review
- CSI code breakout
- Contract dates vs project schedule
- Self-performed work
- Percentage completed
- Overhead, profit and general conditions
- Department request for change
- Bid and performance bonds
- Washington University contract - subcontractor terms
- Exhibits and Appendices
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SLIDE 6
Change Orders
- Markup calculation template
- Credit for project changes
- Approval before work begins
- Best practices
– Utilize University labor rates – Timeliness from Contractor and University – What to look for PM vs. Accountant
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SLIDE 7
Labor
- Staff labor
- Trade labor
- Duplicate charges
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SLIDE 8
Materials
- Sales tax
- Warehouse charges
- Purchased equipment
- Substandard materials or substitutions
- Exercise #1
– Duplicate charges – Old vendor invoices – Invoices for another project – Discounts
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SLIDE 9
Equipment
- Reasonable rental rates
- Equipment values
- Exercise #2
– Independence of the third-party vendor – Calculation accuracy – Usage vs. time on-site
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SLIDE 10
Insurance
- Compliance to contract terms
– Certificate of Insurance – Purchased coverage – Expiration dates – Waiver of subrogation and additional insured sections
- Builders risk
- Property insurance
- Subguard program
- CCIP
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SLIDE 11
Other
- Lien waivers
- Schedule of values
- Reimbursements
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SLIDE 12
Closing Questions?
Thank you for your time, efforts, and cooperation
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