Construction cost audits include financial and compliance reviews of all project costs billed. These tools bring assurance to construction projects by completing an extensive and thorough analysis of the construction contracts and billing records. Construction cost audits can be handled in three various methods: Cost avoidance, cost recovery, or contingency cost control.
Cost avoidance works closely with the client’s management, contractors, designers, and insurance providers throughout the project. It starts as early as the bid solicitation process and continues through contract closeout to find savings as issues arise.
Cost recovery is a detailed historical analysis of all costs incurred during a construction project. This service typically generates a more quantifiable amount of savings and costs less than the cost avoidance service, but will usually result in less actual net savings by the end of the project.
Contingency cost control offers essentially the same service as the cost recovery method, but the work is performed on a contingency fee basis.