Unlock the secrets to mastering construction project oversight with our Construction Contracts Audit Work Program. This tool is designed to help organizations safeguard their investments by ensuring vendor compliance, verifying cost accuracy and identifying potential risks before they escalate. Its structured approach empowers organizations to evaluate internal controls, manage contract complexities, and optimize project outcomes, all while fostering transparency and accountability between stakeholders. With this audit framework, you can take control of your construction projects and ensure they are completed on time, within budget and to the highest standards.

This document contains three samples that guide users through the nuances of construction contract audits. Sample 1 delves into assessing compliance and financial propriety, offering insights into identifying overcharges and ensuring assets are properly classified. Sample 2 zeroes in on change order management, verifying that costs align with contractual agreements and addressing discrepancies in subcontractor payments. Sample 3 explores competitive bidding processes, contractor selection and payment protocols, providing a roadmap for maintaining stringent oversight throughout the project lifecycle.  

Audit work steps include:

• Obtain all contracts related to the construction project, including architectural, general contractor and engineering.
• Review the useful lives assigned to the construction assets to determine if they are under AHA guidelines.
• Review the prime contract between the owner and the construction manager or general contractor.
• Ascertain whether there is clear documentation in the contract regarding the procedures for handling change orders.