The best time to perform an audit is a matter of perspective and desired objective. Traditionally, audits have been performed near the end or at the conclusion of a project. We do not necessarily disagree with that approach and generally believe that a “final accounting” should always be performed at the conclusion of a project (when the final billing is submitted) regardless of the level of audit involvement.
Proactive Owners are becoming more and more involved at the beginning of projects and throughout the duration of the construction process. Pre-contract and interim audit reviews can add significant value to the process (though audit “findings” may not be as readily quantifiable). We believe that effective audit results can be achieved throughout all phases of the process and encourage the use of the audits to not only identify problems, but to also serve as a deterrent. Accordingly, we are proponents of having auditors involved early on in the process rather than waiting to the end. Regardless of the level of audit involvement, we always recommend that a final accounting be performed at the conclusion of a project. A final accounting is a process to summarize all of the relevant aspects of the project (Base contract amount, change orders, billings, cost of work, fee, allowances, savings, bonus, etc.) to ensure that the final numbers are accurate.
