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A construction audit is a review of various aspects of a project to ensure they are performing appropriately and keeping with the contract. Since construction projects typically involve several entities performing a number of concurrent tasks, a construction audit is a crucial tool for keeping everything on track and under budget.


  • Aids Cost Recovery: Construction site costs can vary throughout a project and without proper controls, it can quickly spiral out of control. Many disputes have arisen out of this. A construction audit can help discern as per the contract, which party should be responsible for which costs and helps to keep projects within budgets.
  • Improves Internal Controls: A great deal of conflict on construction sites stems from inability to stay within the scope of the project. Project managers are assigned with the task of ensuring that all parties are performing their requested tasks, a project plan is being followed correctly, and that safety measures are being employed. A construction audit makes sure that project managers are doing their job correctly.
  • Determines the Project Progress: Construction audits are important because they can help ensure that timelines are met. A construction auditor will come down to the job site, review progress, and speak with personnel to get an accurate feel for what phase a project is in. They will be able to assess whether the project is on time, behind schedule or ahead of schedule.
  • Ensures Safety: Construction auditors can review procedures dealing with hazardous materials, equipment, and even walkways, to make sure that a safe environment is being provided for workers.


  • Identifying areas of increased risk related to your construction project.
  • Verifying the accuracy of billings or charges and contract compliance.
  • Evaluating whether funds are being used in the manner intended by management at all levels of leadership.
  • Reporting potential cost savings and cost avoidance and potential recovery.
  • Identifying areas for process improvement opportunities and eliminating inefficiencies.
  • Follow-up and resolve of outstanding identified issues and reporting the status for corrective action as needed.
  • Assisting with the effective project close-out of the program in a timely manner.


  • Reduced costs for owners.
  • Capture and recovery of over/under billings.
  • Detection of fraudulent behavior.
  • Increased accuracy and efficiency for future projects.
  • Document Lessons Learned at Close-out.


  • Project Launches and Auditing: Ideally, your business will pick an auditor for a major construction job during the planning phase in order to maximize third-party input and oversight, particularly on a large building investment or a new type of project. By starting at the beginning, auditors can establish set policies regarding additional spending, the invoicing system and compliance.
  • Construction Audit Procedures: The procedures used in an audit of your construction process largely revolve around the scope of services and timeframe you engage the auditing firm to assess. After the pre-construction phase, auditors continue to monitor billing and construction costs to make sure the project is moving forward according to plan and on budget.
  • Return on Investment for an Audit: The auditor also helps to make sure that a building project is moving forward on schedule. Delays eventually lead to added costs if a contract term needs o be extended, so monitoring time management is essential. Because of the focus on keeping project costs down from the onset and dedication to get a project completed properly in the first time, paying for a comprehensive construction audit can provide an excellent return on investment.
  • Structural Reviews on Projects: A construction audit look primarily at your financials and considers construction elements and safety as it relates to the monetary elements of a project. This can include inspecting materials and completed areas of a build to ensure all elements of a contract are being upheld.

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