Embarking on a major construction or capital project represents a tremendous growth opportunity for your organization. Projects of this size are often among the largest, most complex financial expenditures companies undertake.
Because management teams are focused on separate aspects of the project, comprehensive financial and management controls are often lacking. As a result, we routinely see overcharges from one to three percent occur on extensive projects. These overcharges present one of your major risks. You may also want to focus on a variety of other risks, such as:
- Balanced scorecard preparation and monitoring
- Culture change services
- Data analytics
- Education and team building
Though contracts are signed to ensure a project meets specific expectations, many companies do not verify that the terms of the agreement have been fulfilled. This creates the possibility of leaving millions of dollars behind. Because of the large number of players involved, it can be easy to focus on the structural aspects of the project and lose sight of the bigger financial picture. A construction auditor focuses on strengthening the financial controls throughout the entire process.
How a Construction Audit Helps
A construction auditor acts as the owners’ advocate, providing assurance that the financial
aspects of the project are monitored as closely as the structural aspects. A construction audit provides an aspect of financial security. It can help recoup expenditures already paid, or eliminate overcharges completely. Planning and managing the project’s financial aspects are defining factors. Partnering with an expert like Brown Smith Wallace can make the difference between extensive cost overruns and delivering a project on time and within budget.