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The Construction Audit and Cost Control Institute to Address "The Benefits of Auditing Construction Contracts and Contractors"
Date:8/31/2013

Dallas, Texas (PRWEB) August 31, 2013

Construction audits are performed by many organizations as an integral part of their construction cost control program. However, there are still many organizations who do not audit the books and records of their construction contractors. It is the rare organization that has not experienced problems with at least some of their construction projects. These problems range from cost overruns and project failure to bribery and corruption. Effective auditing of construction activities provides insight into what is really going on, provides a basis for correction and sometimes results in cost recoveries. Some benefits of auditing construction contracts and contractors include:

  •     Insight into what is really happening. Owner management benefits from an objective, independent look at both construction performance and administration. A thorough audit can identify problems with billings and the work itself.
  •     Better understanding of relationships with contractors. Owners benefit from knowing who their contractors are and how they interact with owner representatives. Today good stewardship includes protecting against bribery and corruption in both the public and private sector. Research, visiting contractor offices, and review of contractor books and records can disclose contractors and subcontractors bribing on behalf of the owner, kickbacks to contractors or owner employees, FCPA violations and inappropriate entertainment. Owners with DBE or MBWE programs have discovered their contractors were not the ones actually doing the work.
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