Construction Audits
Maximize ROI Throughout the CapEx Lifecycle
Control costs during your biggest construction projects (and investments) while ensuring transparency with your contractors. Our auditors perform in-depth reviews of your contracts to pinpoint, recover, and prevent financial losses so you can stay focused on driving your project forward.
- Retain oversight of contractors and stakeholders
- Free up your time to focus on project completion
- Increase trust with contractors and suppliers
- Recover overbillings to protect project margins
Why Construction Audits Are Critical
Unexpected change orders, project delays, and cost overruns can quickly erode project success. A construction audit can mitigate common risks associated with managing massive projects with multiple stakeholders.
Ensure Compliance at Every Stage of Your Project
Large construction projects are complicated. We specialize in providing clarity amidst the chaos, helping you navigate complicated contracts and cost details with confidence. From pre-construction to post-completion, our thorough reviews keep your project on track and drive your ROI higher.
Pre-Construction
Ensures fair bidding, clarity, and strength of contract terms, and sets expectations for transparency and governance.
Construction Phase
Monitors payment accuracy, change orders, and other financial risks arising throughout the entire project lifecycle.
Post-Construction
Verifies completion standards, resolves outstanding issues, reviews warranties, and processes final payments after project completion.
Recover Costs, Drive Project Success
Keeping your project on time and on budget is your top priority—and ours. Reclaim control of your project while our experienced auditors dig into the details of your contracts, verifying compliance and offering insights to minimize excess spending.
Recover up to 4% (or more) in cost overruns
Ensure transparency with contractors
Increase the visibility of project costs
Verify billing accuracy
Strengthen contract language
Identify and mitigate fraud and risk
Don’t take our word for it—see the results for yourself.
Discover how we recovered 4.5% of total spend in under 60 days for a Fortune 500 pharmaceutical company’s new facility construction project, negotiating with suppliers to resolve issues faster and prevent future non-compliance.
read the sample auditSeamless, Stress-Free Audit Process
Our efficient audit approach empowers your team to stay focused on your project while we uncover millions in savings for you. We work as an extension of your team to complete audits without disrupting operations for you or your contractors.
Planning
Our team reviews documentation and meets with your stakeholders to understand your objectives and ensure buy-in. After alignment is confirmed, we will connect with your contractors to establish a relationship and initiate the review.
Examination
We work independently with your contractors to acquire documentation, review for compliance, and collect feedback from suppliers. Contractors greatly appreciate this approach, as it ensures you’re fully equipped with the facts to make informed business decisions.
Reporting
We deliver in-depth reports for each contractor audited, including details about each non-compliance issue and corresponding recommendations. Then we meet with stakeholders and contractors to discuss audit findings and ensure mutual understanding.
Resolution & Recommendations
We support your team by providing expert recommendations and tailored strategies to achieve your desired resolution. This often includes contractor negotiations to obtain refunds and opportunities for process improvement or strengthened contract language.
A Better Audit Experience with SC&H
We provide the deepest audits on the market, generating transparency and trust while recovering lost profits faster. You’ll benefit from strengthened relationships with your contractors, better contract governance, and often millions in cost savings.
Expert In-House Auditors
No offshoring here. Our 100% US-based team of CPAs, CIAs, and CFEs can identify non-compliance faster, offering decades of experience auditing Fortune 500 construction projects.
Proactive Communication
Your dedicated audit team keeps you and your contractors in the loop every step of the way. We provide timely updates to maintain transparency, minimize surprises, and offer practical recommendations for success.
Relationship-Focused Approach
Unlike other firms, our auditors aren’t paid on commission, so your best interests come first. Our fair, objective approach also enhances the experience for your contractors. We take the time to build rapport, trust, and collaboration.
Construction Audit FAQs
A construction audit thoroughly reviews contracts with your General Contractor and subcontractors, comparing terms to invoices, bidding processes, time records, and other documentation to ensure compliance. While not always legally required, many organizations opt for audits to mitigate risk and reduce cost overruns. An independent auditing firm should conduct the audit for fairness and objectivity.
Auditors typically examine various aspects of the contract, including payment terms, project milestones, change orders, subcontractor agreements, and many other financial risk factors.
A financial audit is not designed to verify technical aspects of the project, the quality of the construction, or the reasonableness of timelines. These operational factors are verified by construction experts including architects and engineers as appropriate.
If an issue or error is identified, the auditors document their findings and report them to the relevant parties, such as project managers, contractors, or stakeholders. Depending on the severity of the issues, corrective actions may be required. This can include renegotiating terms, implementing process improvements, or taking legal action.
Yes, conducting regular audits can help identify potential issues early on and facilitate proactive resolution, reducing the likelihood of disputes arising between parties.
Errors and issues we often uncover include:
- Change orders duplicating original contract work
- Inflated overhead and profit rates
- Costs billed based on estimates rather than actuals
- Excessive hourly rates and hours billed
- Direct billing costs included in burden rates
- Discounts or rebates not passed through to the owner
- Sales and use tax overcharges
- Subcontracting to related-parties
- Hidden markups
Take the First Step Towards Savings
Connect with our team today to lay a new foundation for stronger contracts, reduced risk, and long-term profitability.
