Construction projects are generally among the largest, most complex financial expenditures undertaken by an organization. For this reason, it’s important that your organization has adequate project management and appropriate internal controls designed for your specific type of construction agreement in place during the entire project life cycle. Strong internal controls are necessary to:
- Ensure procedures are in place to identify and manage risks
- Prevent overpayments and protect against irregularities
- Establish supporting financial reporting processes
- Avoid unnecessary litigation
Honkamp Krueger helps you strengthen the financial and operational controls over the construction process, ensuring compliance with the contract and adherence to industry standards and best practices. Our experienced teams provide assurance that contractual terms are being adhered to by validating critical contractor compliance and costs. In our experience, potential identified overcharges are typically 5 to 10 times greater than the fee for our services.
Our specialized team of construction professionals will also provide you with “root cause analysis” and process improvement recommendations, resulting in a more efficient and effective construction program.
Honkamp Krueger provides construction services for domestic projects and for all three phases of the project life cycle:
Planning and Pre-construction Services
During this phase, HK can help negotiate favorable contracts and identify critical tasks for your project team. We can also review and evaluate proposals and the contract award process.
During construction, our professionals will examine contractor records to ensure the contractor is complying with the specific contract terms. We can also review the budget, schedule and the owner’s “construction in progress” account to verify accuracy.
Project Closeout Services
Closeout audits are highly recommended to ensure the contractor’s final billing is accurate and that all lien waivers, warranties and other final deliverables, such as the as-built drawings, have been obtained.
Specialized construction auditing knowledge and expertise
Managing the financial and risk aspects of a major construction-related capital project requires unique knowledge and expertise. We have what it takes. We know the construction industry ins and outs, including all types of construction contracts from fixed price, guaranteed maximum price, stipulated sum, cost-plus reimbursable, time-and-material to unit price contracts.
A construction audit is a highly complex process – it requires more than reviewing and auditing to a checklist. It requires the uncommon knowledge and expertise of seasoned professionals to efficiently and effectively identify and resolve the high-risk areas in your construction project.
You can relax knowing experienced HK construction audit professionals are protecting your interests. In addition to advanced degrees, they hold numerous certifications such as Certified Public Accountant, Certified Internal Auditor and Certified Fraud Examiner.
What are the benefits of HK’s Construction Services?
We add value specifically in the following five areas:
- Identifying overcharges and undercharges – When our services are not used during the planning stage, we are typically able to identify overcharges of between one and two percent of the project cost.
- Cost avoidance – HK can help you negotiate a favorable contract, identifying critical tasks for your internal team. Our involvement during the planning stage can result in more savings than if we perform a stand-alone, close-out audit.
- Identifying and managing risks – We identify and prioritize risks, and provide recommendations for managing those risks.
- Developing and maintaining financial controls – We establish policies and procedures to monitor both owner and contractor controls.
- Avoiding litigation – We help you avoid the time-consuming and costly litigation process, since well-managed and controlled projects result in fewer conflicts.