Construction Audit Outline Checklist

Prepared by: [Your Name]

Date: [Date]

I. Project Overview

  • Project Name:                                                             

  • Project Location:                                                             

  • Project Manager:                                                             

  • Contractor(s) Involved:                                                             

  • Contract Type (e.g., fixed price, time & materials):                               

  • Date of Project Start:                                                             

  • Projected Completion Date:                                                             

  • Scope of Work:                                                             

II. Contractual Compliance

  • Verify contract terms and conditions (e.g., change orders, deliverables).

  • Review contract amendments or modifications.

  • Ensure proper approvals for any contract changes.

  • Confirm compliance with labor and subcontractor agreements.

  • Check for insurance and bonding requirements.

III. Financial Review

A. Budget Review

  • Original Budget Amount:                                                             

  • Revised Budget Amount (if applicable):                                                             

  • Actual Expenditures to Date:                                                             

  • Remaining Budget:                                                             

B. Cost Verification

  • Invoice review for accuracy and legitimacy.

  • Verify payment schedules and amounts.

  • Ensure compliance with agreed-upon pricing terms.

C. Payments

  • Confirm timely and accurate payments to contractors, subcontractors, and suppliers.

  • Review retention amounts and release conditions.

D. Profit Margins

  • Assess profitability based on current financial status.

  • Check for any discrepancies or cost overruns.

IV. Quality Control

A. Material Inspection

  • Ensure materials meet specifications and standards.

  • Verify vendor and supplier invoices for accuracy.

B. Workmanship

  • Review work performed for compliance with project specifications and quality standards.

  • Identify any areas that do not meet contractual obligations.

C. Compliance with Industry Standards

  • Confirm adherence to safety and building codes.

  • Inspect certifications or licenses for workers and equipment.

V. Timeline and Milestones

A. Review of Project Schedule

  • Original project timeline.

  • Current progress and status.

  • Delays or changes to the schedule.

B. Milestone Review

  • Confirm completion of critical milestones (e.g., site preparation, foundation, framing).

  • Assess any delays and their impact on the overall schedule.

C. Extension of Time

  • Review any requests for project time extensions and their justification.

VI. Regulatory Compliance

A. Licensing and Permits

  • Verify all required permits and licenses are obtained.

  • Ensure ongoing compliance with local regulations and zoning laws.

B. Safety Compliance

  • Check for adherence to OSHA safety standards and regulations.

  • Confirm regular safety inspections are conducted.

  • Review worker safety training records.

C. Environmental Compliance

  • Review adherence to environmental impact assessments and regulations.

  • Ensure proper disposal of construction waste and hazardous materials.

VII. Risk and Issue Identification

A. Risk Management

  • Identify potential risks related to cost overruns, delays, or legal issues.

  • Review mitigation strategies and their effectiveness.

B. Issue Tracking

  • Document unresolved issues or claims.

  • Assess the impact of any ongoing disputes or legal concerns.

C. Change Orders

  • Verify proper documentation and approval for all change orders.

  • Assess the impact of change orders on budget and timeline.

VIII. Audit Conclusion

  • Summary of findings.

  • Recommendations for improvements or corrective actions.

  • Identification of areas requiring further attention or follow-up.

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