Contract Auditing

During any large capital improvement project, you could be at risk for significant losses.  Whether you are the builder, an engineer or the project manager, you will need to respond to multiple vendors, all with different schedules and ongoing change orders.

To ensure that your project is not at risk for losses during this time, it is advisable to institute a contract audit.  By doing so, you will decrease your financial risk and most often discover savings that will offset any cost for the audit process.

While some firms choose to use their internal auditing department for this process, more companies are finding that an outside independent audit is more cost effective and efficient.

At Lucas, Horsfall, Murphy & Pindroh LLP. we specialize in contract auditing in a number of industries.  Our knowledge and experience ensure that we will be both thorough and efficient in the audit process. 

Our contract audit clients benefit in a number of ways

• Through the audit process, clients usually recognize both cost savings and additional recovery of expenditures
• As part of the audit process, LHMP will recommend improvements for internal controls and contracts, ensuring that future projects will have less risk
• LHMP acts as an independent third party, which allows company and vendor relationships to remain intact, regardless of the findings

Types of audits

Engineering

• Lump sum
• Time & materials
• Cost

Construction

• Lump sum
• Unit price
• Time & materials
• Cost reimbursements

Construction management controls

Tax planning