Commercial Litigation | Construction Project Services

Construction Activity Audit Program

Comprehensive Audit Program

A comprehensive audit program offered by The BERO Group was prepared for use with typical lump sum and GMP (Guaranteed Maximum Price) contracts with prime contractors and subcontractors. Procedures related to verifying a contractor's "cost of work" (such as direct labor, material purchases and rental charges) are normally applied to cost-reimbursement type contracts.

Our professionals will apply specific task-oriented audit tests tailored to selected transactions subject to review.

Audit Program Outline:

— Bid Review

— Contract Review

— Risk Assessment

— Control Systems Review and Recommendations

— Contractor Billing Tests – Progress Billings

  • Labor
  • Materials
  • Equipment (owned and rented)
  • Subcontractor charges
  • Permits and licenses
  • Miscellaneous charges (small tools and consumables)
  • Overhead charges
  • Contractor fee
  • Retainage calculation
  • Performance bond and insurance
  • Home office charges
  • Physical inspection and review of engineering inspection reports
  • Travel

— Change Orders Pricing Review

  • Labor and labor burden
  • Labor productivity factors
  • Material quantity and pricing
  • Indirect cost application
  • Subcontractor "buy-outs" verification

— Delay and Disruption Claims Examinations

  • Control Systems Verification
  • Financial Review

Representative engagements include work on the following projects:

  • Alaska Native Medical Center, AK
  • Tuba City Boarding School, AZ
  • Disney Concert Hall, CA
  • Century Theatres, IL
  • SBI Crime Lab, NC
  • SAHC – Hyatt Resort, NM
  • Venetian Casino, NV
  • JFK Airport, NY
  • Cleveland Browns Stadium, OH
  • Prairie Wind Hotel & Casino, SD
  • Brazoria County Prison, TX