This audit could start at any part of the construction - payment cycle, but to save audit time and client money the best time to start the engagement is at substantial completion when the construction is almost complete. Unpaid retention is significantly greater then and the Construction Manager will be more cooperative.
When a prospective client wants a cost - payment recovery audit, we have to define our scope of audit work, financial risk and range of recovery. To prepare our proposal we require scope of work documentation.
Once we agree to work together and our contract is executed, your KBC engagement manager will be your contact and advisor. We will send you our sample Engagement Letter that you can forward to your Construction Manager or General Contractor. We will lead the way to start your construction audit.
We are very careful NOT to disturb the client's relationship with Construction Manager or General Contractor. The project comes first. We audit documentation, not conversation.
Our audit methods frequently require us to bore deep into several billing layers. We audit verify:Labor agreements and other documentation including:
Remember, the audit process should start while there is substantial retention, generally $500,000 or more. Our Client Owner needs financial leverage to secure cooperation. The unpaid amount on the final application is usually inadequate to secure contractor cooperation.
The client determines the fee arrangement: commission based, an hourly fee, or fixed fee.