Construction audit is an independent evaluation of technical and financial performance of investment construction projects. Its objective is to provide interested parties with objective information on project progress and its specific stages.
Construction audit assesses adequate construction and design costs, forecasts potential budget correlation as well as indicates unfavorable events related to improper quality, failure to observe construction periods and amount of construction work and improper use of invested funds. All this makes a construction audit an effective risk management tool.
КMEF-Audit offers its clients competent services and professional assistance at any stage of investment projects.
Construction audit is effective in the following cases:
- upon signing a credit agreement for refinancing of expenses;
- upon making a decision to make an investment;
- in case of disputes among project participants;;
- during the entire construction process until commissioning;
- in case invalid reports are presented;
- in case of unauthorized use of funds and tangible assets;
- in case of embezzlement of tangible assets
- in case of unscheduled downtime;
- in case of unscheduled unfavorable events;
- in case of disputes among participants in project implementation;
- upon making a decision on effective influence on the project;
- when physical wear assessment is required;
- during scheduled and unscheduled inspections.
The main audit stages of investment construction projects are listed below:
- project review: analysis of documents submitted by the Customer;
- visit to the construction site, comparison of submitted documents with current condition of the investment project;
- construction project budget expertise;
- analysis of any deviations and potential risks;
- preparation of a report based on audit results.
is an assessment of construction budget with a further supervision of spending of invested (borrowed) funds that includes inspection of the composition and amount of work actually completed in the reporting period. Financial oversight allows comparing actual work with design specifications and estimates as well as work reports and construction project budget.
The following objectives are accomplished by financial oversight:
- analysis of an investment project budget;
- budget adjustment and preparation of a further detailed project budget for quality assessment of current and future project indicators;
- identification and analysis of deviations from planned expenses;
- analysis of expenses regarding proper application of funds;
- monitoring of proper spending;
- assessment of damage caused by unforeseen circumstances;
- assessment of risks based on identified deviations;
- inspection of design specifications and estimates, cost of construction work;
- assessment of the average market value of materials and work;
- analysis of budgeted costs;
- analysis of financial investment schedules;
- inspections and revisions;
- preparation and maintenance of a summary register of expenses, completed work and executed agreements.
is control over terms, amount and quality of construction work as well as analysis of compliance with applicable Russian laws. Technical supervision also includes inspection of availability and completeness of design documents, permits, approvals and accompanying documents.
Technical supervision includes the following:
- verification of compliance with laws regulating construction activities in the Russian Federation;
- inspection of completeness of design and work documents as well as other accompanying construction documents;
- analysis of financial risks based on identified deviations;
- analysis of a production plan;
- analysis of production plan implementation;
- technical supervision of the quality of work and materials;
- construction safety control;
- inspection of the quality of executive and primary documents;
- inspection measurements of work. Comparison of measurement results with reporting documents;
- analysis of feasibility of additional work;
- hidden work acceptance;
- preparation of bills of works for estimates and control
- supervision over technological order of construction procedures;
- analysis of materials depreciation according to use standards and project documents (M-29 form).