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PRE-CONSTRUCTION AUDITS


Provide Contract Negotiations

Objective: Assist in negotiations with contractors and in writing contracts (i.e. specific definitions of reimbursable costs, processing contract changes, etc.) to avoid subsequent misinterpretations of contract language.



Review General Contractor's Guaranteed Maximum Estimate

Objective: Ensure the Owner is aware of the validity of the items included in the guaranteed maximum price. In a review of this nature, we often discover items increasing the contractor's profit beyond that allowed by the contract (i.e. profit on alternate pricing, undisclosed contingencies, etc.). In addition, audits of the general contractor's proposed labor burden rates and insurance costs are performed to determine the validity of the estimated amounts and initial cost verification.



Review General Contractor's Administrative and Accounting Controls

Objective: Determine if the contractor's administrative and accounting procedures are adequate to meet the documentation and reporting needs of the Owner. This is especially important when using a contractor for the first time. This review has a beneficial psychological effect on contractor personnel, as they are immediately aware that the information they are generating will be audited.

 

Pre-Construction Audits | Audits During Construction | Post-Construction Audits