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470 views49 pagesConstruction Auditing
This document provides an overview and introduction to construction auditing. It discusses the purpose of construction audits, including monitoring costs and ensuring projects stay on track. It defines common construction terms and describes different types of construction contracts and their associated risks. The document also outlines the typical phases of a construction project life cycle and how projects are commonly organized and managed. It recommends that high-cost, high-risk, or problematic projects be prioritized for auditing. The summary concludes by listing the typical elements involved in a construction audit, such as reviewing bills, contracts, on-site inspections, and generating reports.
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Walid MarhabaCopyright
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100% found this document useful (2 votes)
470 views49 pagesConstruction Auditing
This document provides an overview and introduction to construction auditing. It discusses the purpose of construction audits, including monitoring costs and ensuring projects stay on track. It defines common construction terms and describes different types of construction contracts and their associated risks. The document also outlines the typical phases of a construction project life cycle and how projects are commonly organized and managed. It recommends that high-cost, high-risk, or problematic projects be prioritized for auditing. The summary concludes by listing the typical elements involved in a construction audit, such as reviewing bills, contracts, on-site inspections, and generating reports.
Uploaded by
Walid MarhabaCopyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
- Introduction to Construction Auditing: Introduces the basic concept of construction auditing, including the purpose and key objectives.
- Our Purpose - an Overview: Provides an overview of the topics covered in construction auditing, setting the stage for detailed discussions.
- Ground Rules: Sets the ground rules for engaging with the material, emphasizing open communication.
- Terms: Defines key terms and concepts frequently used in construction auditing.
- Types of Contracts: Describes various types of contracts used in construction projects, such as Lump Sum and Cost Plus.
- Why Audit Construction Projects?: Explains the rationale behind auditing construction projects, highlighting management benefits.
- Goals of a Construction Audit: Outlines the primary objectives of conducting a construction audit, such as cost identification and litigation avoidance.
- Construction Life Cycle: Discusses the different phases in the construction project life cycle, from planning to close-out.
- How Are Construction Projects Managed?: Discusses the roles and responsibilities of the various personnel involved in managing construction projects.
- External Organizations: Lists external organizations and their roles in construction projects.
- Typical Project Organization: Illustrates a standard hierarchical structure for project organization in construction.
- What is the Best Organization?: Discusses different organizational structures and their effectiveness in construction projects.
- How Should Projects Be Selected for Audit?: Describes criteria for selecting construction projects for audit, focusing on contract types and project profiles.
- Contract Risk Cost Plus: Analyzes risks associated with Cost Plus contracts, such as labor and material costs.
- Contract Risk T & M: Describes the risks associated with Time and Materials contracts, focusing on cost accuracy.
- Unit Price: Highlights risks specific to Unit Price contract types, focusing on estimating errors.
- Recommended Contract Type: Advises on which contract types are most suitable based on risk and cost efficiency.
- Elements of a Typical Construction Audit Program: Details the key elements and steps in executing a construction audit program.
- Audit Reports: Discusses the types of reports generated from audits and their respective contents.
- What Should Be Contained in Trip Reports?: Outlines the components of trip reports within audits, including summaries and schedules.
- Auditor Selection: Details the criteria and considerations for selecting internal or external auditors for construction projects.
- Change Orders: Introduces the change order process in construction projects, including important considerations.
- Change Order Template: Provides a template for structuring and documenting change orders in construction projects.
- Typical Findings: Identifies common issues found during audits of construction projects, such as pricing and material use discrepancies.
- Which Types of Contracts and Projects Should Be Audited?: Discusses the varieties of contracts and projects that warrant auditing to ensure compliance and risk management.
- When Should Construction Projects Be Audited?: Addresses the timing for auditing construction projects and the importance of concurrent auditing.
- Jefferson Wells Approach: Explains the methodology and steps employed by Jefferson Wells for auditing construction projects.
- Contract Analysis: Outlines the elements of contract analysis, including execution and attachment verification.
- Work Plan: Describes how to create an audit work plan and select appropriate tests for construction projects.
- What Does a Contractor Billing Look Like?: Illustrates examples of contractor billing forms and certification requirements.
