Commercial Litigation | Construction Project Services

Construction Contract Risk Consulting

Comprehensive Risk Assessment

The risks associated with construction activity vary depending on the type of contracts used. Also, change order requests present another set of issues to which careful attention should be paid.

Below is a sample of risk areas in three most common contract categories.

Contstruction Contract Risk Analysis:

We will recommend a system of controls including contractor selection criteria, pay application, and change order approval process. We will verify contractor's data, recommend contract language, and audit sub-contractor "buy-out" results.

Construction

We will provide routine or ad-hoc pay application audits, change order scope and price verification, cumulative cost components tracking as well as support documentation audit. Reconciliation of project expenditures will ensure that duplicate billings, duplicate payments, and/or duplicate scope items are detected in a timely manner. Interim audits of selected data on an as-needed basis can be an effective tool for ensuring full compliance with the contract documents.

Post-Construction

We will conduct a final audit of the project independent of the owner's close-out procedures. This audit will give you the opportunity to evaluate records and documents normally not seen during routine operation processes.

The BERO Group will work with your project management and/or internal audit professionals in a team environment to deliver best results most efficiently. The Construction Activity Audit Services we offer are further enhanced by our recognized expertise in g

1.) Lump Sum Contracts

  • Specified quality materials not used
  • Specified construction method not used
  • Specified services not provided
  • Unapproved credit alternates implemented
  • Contract quantities not installed
  • Allowances not properly adjusted
  • Required bonds not obtained
  • Required insurance coverage not obtained
  • Owner provided items not credited

2.) Change Orders Pricing Review

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

3.) 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