Construction projects are often time-consuming and expensive. With many moving pieces and a number of contractors performing concurrent tasks, it can be a full-time job to manage and can quickly spiral out of control.
To avoid overcharges and fraud, you should hire an independent third party to perform a construction audit. A construction audit can help you take back control and ensure your project costs are being charged in accordance with the terms of the contract. It will also give project stakeholders peace of mind with how their money is being spent.
Here we’ve put together everything you need to know about construction audits, like how they can help your project and why it’s crucial to involve a professional.
How a Construction Audit Can Help Your Project
A construction audit can be a significant tool for your next project, as an auditor will establish oversight and manage the project progress from a financial standpoint.
As expenses are charged to your project, an auditor will verify that those expenses are for that specific project. Keeping the financial matters in order as such allows you to know exactly what you’re spending, ultimately helping you stay within or under your budget.
Working closely with all parties involved, an auditor can determine that all construction costs incurred are appropriate. They also work with the client’s internal project management team beforehand to assess high-risk elements and suggest ways to better manage those risks.
Another way that a construction audit can help your project is by comparing project management processes, schedule controls, and project costs with industry best practices.
Overall, a construction audit will keep all parties transparent and honest.
Is a Construction Audit Right for Your Project?
If you have a major construction job coming up, a construction audit is likely a good idea.
Construction projects that are not adequately managed can quickly spiral out of control and create a potential for overcharges and fraud. Involving a professional auditor is key, as their roles differ from both the business owner and construction manager. Each party is typically focused on their own point of view, while an auditor can look at the financials from all appropriate angles.
By hiring a professional, you can effectively meet project goals while reducing your risks and costs.
Ready for a construction audit? We can help. At MGA, we genuinely dig deep to understand your particular business and operations. By doing so, we can create an assurance approach tailored to your specific needs.