Project cost audit

Project cost audit

“The time to audit a project is when you can still add value…….auditing a project at the end is like bayonetting the wounded.”

JOY GUMZ

Are you a contractor, consultant or employer wishing to validate if cost has been properly incurred under any cost reimbursable building contract including NEC, JCT, FIDIC or IChemE standard forms of contract?

 

 

If that’s you then look no further, the benefits of this service are as follows:

  1. Improving commercial controls
  2. Better financial reports and forecasts
  3. Defining cost based upon contract terms
  4. Validating actual cost has been properly incurred
  5. Avoiding any late surprises
  6. Resolving any differences
  7. Providing greater out-turn certainty
  8. Enabling accounts to settled promptly

Projects can be challenging especially if relationships are not what they should be and communications have deteriorated – adversarial relationships create project and business risk when it comes to open book cost management. Sometimes, significant commercial differences will arise. If these differences are not dealt with quickly they escalate leading to threat of adjudication or litigation.

Contractual or commercial differences may arise on construction or engineering projects due to various causes including

  • Non compliance
  • Poor contract administration
  • Inappropriate reporting or forecasts
  • Ambiguous contractual terms
  • Poor definition of cost
  • Lack of contract knowledge

We take the pressure off and help you to manage the risk and get things back on track keeping projects running smoothly and protecting tight margins.

  • Establish basis of contract
  • Ensure clarity of definition of cost
  • Audit the works done or services provided
  • Review cost claimed for change events
  • Assessing contract or site administration
  • Provide an analysis of any differences
  • Negotiate settlement of any differences
  • Assess the final account
  • Reviewing contract documents

You may also like to read our case study for project cost audit for the Rugby Western Relief Road project provided jointly for a national contractor and local authority on the basis of differences over an NEC main Option D cost reimbursable contract.

We will take pressure off you and do a great job but please don’t just take my word for it have a look at what one client says below and to read other testimonials click here

“David’s role was to resolve the disputes that existed and to avoid further escalation by bringing the two parties together to work towards a resolution in line with the contract.David quickly earned the respect of both client and contractor as his commercial management skills and knowledge were recognized. The fact that the final account was settled within four months of contract completion is a testament to David’s skill and tenacity.”

Graeme Fitton (Warwickshire County Council)

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“In the time I have worked with David he has demonstrated excellent interpersonal and communication skills in liaising with the company’s clients. The technical expertise that David has brought to the company has been invaluable.I have always found that David behaved in an exemplary manner and demonstrated complete integrity in delivering the many projects he has undertaken. He is trustworthy and dependable and particularly adept in dealing with construction contract law issues that arise on complex and difficult projects.”

Nigel Barr