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DISCUSSIONS > IIA GENERAL DISCUSSION AREA [ REFRESH ]
Thread Title: Construction Audits
Created On Thursday November 29, 2012 10:49 AM
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WAGirl


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Thursday November 29, 2012 10:49 AM

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We currently use a external Construction Audit Company to audit major construction projects that we have. They do a great job and we are happy with the results. However, they are a bit expensive. We still want to keep them because we like their work, but we want to also evaluate other options. Does anyone have any other Construction Audit Company's that they recommend? Also, we prefer not to use one of the Big 4. Thanks in advance!

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eulonda


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Wednesday December 05, 2012 3:48 PM

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Good Afternoon, I worked with Denise Cicchella of Auspicium Audit & Consulting. Her email is denise.cicchella@auspiciumco.com and their website is www.auspicium.com.

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Ian Graves


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Monday December 17, 2012 3:18 AM

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WAGirl, Keep in mind a few things while considering the change:
a. Does the prospective company have certified auditors who specialize in projects? There is a certification out there, but I dont remembe the name. Construction is just one of the parts. Once you find this out you can probably find lots of audit companies advertising their credentials through internet searches.
b. Determine the total cost to do the audit and compare with industry benchmarks. There is a specific percent of total project spend that is benchmarked among profesionals (KPMG has a rate that is likely a bit high, but probably in their own interest). You may find that your current service provider is expensive, but under the benchmark.
c. Get with your buyer to find ways to negotiate a better price with your current service provider. If you are happy with their services, cost shouldnt be ranked as the main priority, especially in something where the service providers are not homogeneous. Depending on how big your projects are, you may be able to parse out certain services to more than one service provider (not recommended, but if cost is the prime consideration in your move, you can keep services you like with the current vendor and "outsource" the pricey bits to someone cheaper).
d. If you havent done so already, create a list of attributes that you desire in selecting a vendor (your buyer can help), and rank (through weighting) the attributes. This will help you justify the change in service provider or provide justifiction for keeping the existing service provider.

Again, going back to the issue of cost benefit, a good audit company may pay for themselves through audit findings. On billion dollar projects, just one finding can save millions going forward (for future audits) or on claims to the contractors for current audits. Good Luck!

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ian graves

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DISCUSSIONS > IIA GENERAL DISCUSSION AREA [ REFRESH ]
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