Kelly Business Consultants (KBC) has been performing Construction Audits since 1995. We have audited $3.5 billion in construction projects, performing full Construction Audits.
Millions of dollars have been recovered performing complete construction audits. Additional millions have been saved by recommending contract improvements to contractor contracts before execution and to control procedures during the construction audit.
We have audited projects up to $400 million across the United States with most of our projects being $20 to $140 million. We always recover or save more than our fee. Recovery ranges 1% to 3% of construction cost and our recovery represents up to 10 times our fees, depending on the type of construction contract and the client’s choice of fee structure - commission, fixed, hourly, or a combination.
We have performed construction audits of hospitals, medical centers, stadiums-arenas, chemical plants, casinos, hotels, and schools - university buildings. We are very familiar with cost, payment, audit and other language in the following types of construction contracts: GMP, not to exceed, lump sum, and cost plus a fee.
As your Construction Auditor, let KBC tailor the audit to meet your goals, criteria and requirements starting with one of two basic audit types. Our basic Construction Audits include: either a Cost-Payment Recovery Audit which is a full audit starting near substantial completion or a Contractual Savings Audit which starts at the contractor proposal stage.
If you chose a Cost-Payment Recovery Audit, to maximize recovery, we recommend starting the audit when unpaid retention is large enough to motivate the Construction Manager. Our experience indicates the audit should start no later than Substantial Completion. Then the Construction Manager or General Contractor will be more cooperative. If you wait until “final Payment Application” it is too late. The retention amount represents little more than Punch List Costs.
If you chose a Contractual Savings Audit we recommend starting the audit when the Construction Manager is selected, but before the detail contract language is negotiated and finalized. We analyze the language in the proposed contract plus exhibits/attachments to recommend specific cost control improvements. This type of audit maximizes total saving with pre-emptive contract language.
These two BASIC TYPES can be easily tailored to your firm’s goals. Let our experienced Construction Auditors design a program to maximize cost savings.
YOU CHOSE THE CONSTRUCTION AUDIT THAT FITS YOUR NEEDS
COST-PAYMENT RECOVERY AUDIT or CONTRACTUAL SAVINGS AUDIT