Services: Construction Auditing
Close Out Audits
For "close out" construction audits, before we start an engagement, we perform a short Audit Risk Evaluation to determine the range of expected loss/recovery. This Evaluation is provided free if the prospective client uses our services.
The KBC Audit Risk Evaluation, can help our prospective client determine what type of fee arrangement is best for them.
We recover three to five times our fee on "close out" audits.
Auditing after "close out" is possible if your construction contract has a three (3) year right to audit provision.
Also, our audit may be free if the Records/Audit article in your contract states the contractor will pay for the audit whenever over-billings exceeding one percent of total construction cost.
With a contingency fee arrangement, we work at our corporate office and travel to the contractor's office near the end of the audit to complete our work.
Our experience shows most over-billings occur at the beginning of construction and the period from substantial completion to final Payment. Therefore, auditing from the final Payment Application and final Job Cost Reports will miss substantial over-billings.
Our client can chose to what extent they want to participate in the claims recovery process. We can do it independently, partner with our client or turn over our reports to our client and allow them to negotiate with their contractor to recover over-billings.
For more information on our Construction Auditing Services or to request a complimentary Risk Evaluation Report, please call/fax us or fill out our online contact form.