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Construction Risk Audit
Helping you navigate a complex and costly construction environment
Managing the risks associated with a major capital construction program can be overwhelming. Subcontractor and supplier pricing volatility, the limited availability of skilled labor, and the ever changing (and always burdensome) compliance requirements that come with having multiple project stakeholders are just a few of the considerations today’s construction project owners face.
RSM works closely with real estate developers, state and local governments, colleges, universities, and many other businesses to increase control, reduce construction costs, and improve outcomes within these complex risk environments. We can help you understand regulatory changes, employ technology solutions, perform design and construction risk assessments, and execute final accounting, compliance and forensic audits.
RSM delivers construction compliance consulting services through dedicated client service teams comprising local, regional and national advisers. Many of our practice leaders are former contractors, construction auditors or construction industry professionals. In addition, many of our team members hold professional certifications, including certified public accounts, certified fraud examiners and certified internal auditors.
RSM’s team of dedicated professionals can work with you to navigate risk in many areas, including through:
- Risk assessment. Holistic assessment of your capital construction program, including evaluation of technology systems, contracting approaches, organizational structure, and key accounting and project management controls.
- Internal audit. Assessment of process and program control design and effectiveness.
- Construction contract compliance audit. At interim or closeout, contractual compliance reviews to identify potential recoveries or instances of noncompliance with specific terms of your construction agreement(s).
- Project final accounting audit. At project closeout, independent validation of billings and costs incurred. Typically only applicable to guaranteed maximum price (GMP) contracting approaches.
- Monthly pay application audit. Testing compliance of monthly construction invoices with their respective agreements. This includes all supporting documentation, certified payrolls and other relevant documents.
- Cost proposal reviews. Reviews of cost proposals submitted by construction professions to identify unreasonable budget amounts, inaccuracies, or instances of non-compliance or conflict with the agreement.
- Change order reviews. Similar to cost proposal reviews, review of change order documentation to identify excessive or noncompliance costs.
- Contract review and negotiation. Incorporation of best practices, newly developed industry approaches, key cost controls and change management requirements are just a few of the ways RSM continues to help our clients negotiate better contracts and achieve fair and equitable risk transfer.
RSM is a leading adviser to growing companies. We combine the scale of a national practice with a high level of personal attention from seasoned construction industry professionals with access to data analytics, big data and other technology tools.