Contract Terms and Conditions Review Report

This sample audit report provides internal audit's analysis of the terms and conditions of two construction project contracts.

In this example, internal audit analyzed two existing contracts and developed recommendations for the expansion project contract terms and conditions based on leading practice terms and conditions in construction contracts. The following areas were considered, comparing terms in the engineering services and supply contract, the preliminary construction contract, and leading practices: audit clause, payment terms, invoicing, labor rates and overtime, taxes and markups.