Construction projects are generally among the largest, most complex financial expenditures undertaken by an organization. For this reason, Honkamp Krueger & Co, P.C. (HK), a Top 100 CPA and business consulting firm, built an extensive construction cost consulting team to save organizations millions of dollars across the country. Our seasoned team includes professionals with construction audit, project management, owner’s representation, architectural, engineering, cost recovery and cost prevention experience in all facets of the construction process/lifecycle.
Organizations engage our team to:
- Identify, prevent and recoup overpayments and protect against costly billing irregularities
- Identify obscure billings
- Validate contractor compliance with key and critical project contract terms and industry standards
- Develop overall organizational construction strategy, recruit and train project management professionals/staff, and develop detailed processes and procedures to effectively administer and manage capital construction projects
- Share, implement and utilize HK-developed proprietary best-in-class forms to promote consistency and visibility into project costs records to identify costly billing errors, whether intentional or unintentional
- Selection and evaluate contractors, GMP/cost proposals, subcontractor award process, and every step of the construction contract lifecycle
The HK difference – part of the team
With HK, you receive a collaborative relationship that seeks to ensure the costs charged to a project are in line with contract/agreed upon requirements and are fair and reasonable. We know the importance of maintaining a good working relationship between the owner and contractor and avoid those stressful, frivolous requests. By ingraining ourselves in the process and as part of your team early, you gain peace of mind that your best interests are taken care of and your organization is charged fairly and accurately.
Specialized construction auditing knowledge and expertise
A construction audit is a highly complex process – it takes more than reviewing and auditing 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.
Managing the financial and risk aspects of a major construction-related capital project requires a unique set of skills. We have what it takes. Our team possesses the necessary credentials including Certified Construction Auditor (CCA), certified public accountants (CPA) and Certified Fraud Examiner (CFE). HK’s team is recognized nationally as leaders in CAS training and seminars having collectively conducted over 15 training seminars in recent years across the U.S. for organizations such as:
- Institute of Internal Auditors
- Association of Healthcare Internal Auditors
- Association of College and University Auditors
- Financial Executives International
What are the benefits of HK’s construction audit services?
- Identifying overcharges and undercharges – Overcharges of between one and two percent of the project cost are often identified through HK’s services. Owners can save construction dollars before they are spent by including HK in the project planning stage.
- Cost avoidance – Negotiate a favorable contract by providing rigid contract language and requirements regarding GMP creation, payment application production, project closeout and everything in between related to project billings and costs.
- Identifying and managing risks – Uncommon or obscure areas of cost recovery opportunity are often identified due to our team’s vast and extensive project experience ranging from project cost management, engineering, owner’s representation services and cost recovery.
- Developing and maintaining financial controls – Receive best-in-class forms, processes and procedures to promote consistency, visibility and validity into all contractor tier project cost records.
- Avoiding litigation – Avoid the time-consuming and costly litigation process by engaging HK in the planning stage, since well-managed and controlled projects result in fewer conflicts/disputes.
- Why construction audits are important to organizations
- Why construction projects are important to internal auditors
- Know your construction contract: Recognizing and managing risk based on contract type