Contract Audit Services

Why we need contract audits?

The services would enable evaluation of preparedness of contractor in tackling the risk associated with time and cost overruns. This includes review of methodology for measuring the work, billing process, review of critical correspondence relating to allegations of opposite party, claim submittal process, contractual notices, claim basis and quantification. This also involves computation of damages for delay in payments and reconciliation of various recoveries and deductions.

Our people from CREDICON would be visiting the clients construction area time to time and also hold outside conferences, site audits, conferences at controlling office and periodical tele conference in getting weekly reports, monthly reports and all dash board diagrams, which will be shared with top management.

We would be studying the contract document very closely, which makes us identify pitfalls and windfalls. We would be helping you in minimizing the risks from pitfalls and maximizing the gain from windfalls If any. We would be alerting the management and employees whenever needed. We would also be maintaining contract records and correspondence. These records would help top management to take control of the project any time, if site manager / project manager goes out of his job anytime during the project.

Our specific audit services and benefits

1. Contract deliverables audit: This is an initial review at any stage before any change or planning is to be carried out, resulting in identifying "Scope" or what is to be delivered and what not.

2. Measurements and billing audit: This is for checking and listing various "Methods of Measurement" and billing procedures as per contact. This will help you save money by best measurement practices. This will also result in billing forecast and audit for work done.

3. Program and delay audit: This is to check, recommend and develop the best possible plan and schedule as per global standards. During implementation of the project, to conduct delay analysis and apply for Extension Of Time or costs. This will help in controlling delays and save on the final delay disputes and claims as a benefit to the company.

4. BOQ and Variations audit: The contract BOQ or the BOQ developed by contractor for milestone billing needs to be rechecked with construction drawings when a variation item is approved. The unit rates used in the pricing have to be worked out based on the works that will be executed. In many projects, new rates have to be analyzed to price variation where cost engineering estimates will be of use. This service will allow the user to have a better analysis and third party audited quantities and unit rates. As an option the cost to price variances can also be reported if this benefit is required by the user of the services.

5. Contemporary Record Audit: A third party audit is recommended in all projects to build up the contemporary records, which will include but not limited to Daily reports, schedules, Minutes of meetings, instructions, request of information, transmittals of approvals, quality audit/assurance checklist and documents as required by contract. The benefit will be that upon the occurrence of an event giving rise to a delay of cost addition, the contemporary records and related documents will be kept in sequence for future reference.

6. Project Closing Audit: One of our consultants will spend time at site or office where all records are maintained and audit to see if the records, billing, variations, claims if any are all kept in a systematic manner and write a report. This service will allow the company to build a knowledge base for its future projects and this will be the direct benefit.

We ensure to our clients an experience based contract management support. We undertake services in close coordination with the clients at all stages.

Our services include