Construction Audit Services

Integrity Built into Every Audit

Secure your construction project's success with SSL Associates, Chicago-based CPAs, serving clients nationwide. We specialize in audit for construction companies to align your financial strategies and keep your initiatives on track and within budget.

Get in Touch

SSL Associates Ltd.
Construction Audits

Advantages of Implementing Audit Practices in Construction Projects

These comprehensive benefits underscore the importance of implementing construction audits in any major building project, safeguarding investments, and guaranteeing that projects meet their intended objectives efficiently and effectively.

Optimize Financial Management:

Construction audits identify overcharges, errors, and unauthorized expenditures so that every dollar is accounted for accurately. This scrutiny enhances overall cost efficiency and prevents costly financial oversights.

Elevate Contractor Performance

Contract Audit provisions encourage meticulous record-keeping and higher standards of accuracy and transparency from contractors. This leads to better service and fewer mistakes during project execution.

Maintain Reliable Financial Records

Regular audits highlight deficiencies in financial documentation, enabling the maintenance of complete and accurate records essential for effective project management and future auditing.

Accurate Progress Evaluatio

Timely completion is critical in construction. Construction auditors visit sites to review ongoing work and consult with personnel to provide an objective assessment of the project's phase. This insight is vital for construction companies, as it helps determine the appropriate timing for client billing based on project milestones to ensure that financial transactions align with actual progress.

Reinforced Internal Accountability

Construction audits strengthen internal controls by verifying that project managers adhere to the agreed project plans and perform their duties effectively. This oversight establishes contractual tasks are executed as specified, safety protocols are upheld, and discipline is maintained on site. By identifying and addressing any deviations, audits mitigate misunderstandings and conflicts, promoting accountability throughout the project lifecycle.

Safety Assurance

The audit team thoroughly examines safety protocols concerning hazardous materials, equipment use, and site conditions to guarantee a safe working environment. This review is essential for compliance, preventing accidents and ensuring the well-being of all personnel on-site.

What Is Included in Our Comprehensive Construction Project Audit Services?

Enhance your company’s productivity and compliance with SSL Associates' robust construction audit solutions:

Comprehensive Project Risk Evaluation: Systematically identify and mitigate potential risks throughout your project lifecycle.
Contract Compliance Review: Scrutinize all contractual elements to safeguard your project’s interests and guarantee adherence to specifications.
Analysis of Change Orders and Financial Reserves: Assess all change orders and financial reserves to confirm their necessity and alignment with the initial budget.
Assessment of Payment Applications: Detailed examination of payment applications for accuracy and adherence to contract terms.
Final Project Review: Comprehensive evaluation to ensure all components of the project are completed as per contractual stipulations.
Operational Efficiency Improvements: Offer strategic improvements for enhancing process efficiency across project stages.
Safety Protocol Review: Inspect and enhance safety measures to comply with regulatory standards and minimize hazards.
Cost Management and Project Supervision: Provide oversight to ensure effective management of costs and project timelines.
Financial Health and Cash-Flow Analysis: Monitor and evaluate cash flows to maintain and improve the project’s financial stability.
Targeted Audit for Subcontractors: Conduct focused audits on subcontractor engagements to ensure performance and regulatory compliance.
Cost Allocation Studies for Project Segments: Segment project costs for detailed financial analysis and reporting.
‍Exploration of Tax Incentives: Identify applicable tax incentives and credits to optimize your project’s financial outcomes.

Streamline Your Project and Safeguard Your Investments

Start your construction audit with SSL Associates and see the difference firsthand. Reach out today!

Schedule Consultation

(630) 819-6040

Assessing the Need for a Construction Audit in Your Business

Here are some key factors when considering construction audits:

Evaluating whether a construction audit is beneficial starts with examining the project's scale, duration, and the nature of the contract. Projects involving cost-based contracts often present more opportunities for financial oversight due to the inherent risks and potential for savings. High-value projects, especially those surpassing budget expectations or involving excessive change orders (over 10%), particularly warrant an audit.
If a project has attracted fewer than three bids, features unusually low fees, or the fees are pegged as a percentage of the total cost, these are red flags that suggest the need for an audit. The relationship history with the contractor also plays a crucial role; new contractor relationships or long-standing ones can both introduce different risks.
Consider the findings from previous audits and management’s familiarity with construction projects. Infrequent builders, such as those undertaking projects sporadically (e.g., every decade), may lack the necessary experience to navigate complex construction challenges without oversight.
Additional risk factors include self-performed work by the contractor, the existence of shared savings clauses, and significant project contingencies or allowances. The level of risk increases in high-profile or particularly hazardous projects. An audit becomes more crucial in such contexts to ensure financial and operational disciplines are maintained.

Why Choose SSL Associates for Construction Audits?

Here’s why partnering with us for a quality audit in construction is a decision you can trust:

In Business Since 1986

With nearly four decades of experience, SSL Associates has honed an in-depth understanding of the construction industry's nuances and challenges.

Comprehensive Audit Scope

Our audits cover every aspect of your project, from initial risk mitigation to final project review, so that no detail is overlooked.

Tailored Approach

Understanding the distinctiveness of each project, our services are designed to address the specific obstacles your construction company may face, providing customized and effective solutions.

Commitment to Transparency

We believe in clear communication and transparent processes so that you’re informed and confident in every decision along the way.

Hear from Our Clients

Seamus Naughton, Lake Shore Glass

5.0

As the owner-operator of a construction company, my hours are spent focusing on the operational aspects of our business. Managing our year-end financials was an unwelcome challenge that was a large drain on my time. Having SSL Associates, Ltd. freed me to focus my attention where it best served my company, and gave me peace of mind that our accounting would be done accurately, professionally, and on time. Their ability to work hand in hand with our accounting department allows us to tackle problems as they arise throughout the year to ensure all tax & financial reporting deliverables are free of any last-minute headaches.

Steve Brown, VP Business, Sabre Hockey Association

5.0

SSL Associates, Ltd. has been an invaluable resource for our youth hockey non-profit organization. Their team's expertise in tax compliance and financial reporting has been instrumental in ensuring transparency and accountability to our many families, donors and stakeholders. Their commitment to excellence and their deep understanding of the non-profit sector have made them an indispensable part of our success and a valued partner that we trust and rely on for their guidance.

Kristin Newell, Director of Finance and Administration, Evolution Soccer Club

5.0

When we started the not-for-profit youth travel soccer club, we quickly grew large enough that we are required to be audited by an independent accounting firm each year. We have used SSL Associates Ltd. for the past seven years and couldn’t be happier with their services. SSL also helped us make improvements to our Quickbooks so that the Audit is now very efficient. Their responsiveness and expertise in non-profit accounting has enabled our staff to stay focused on our mission of providing a competitive and positive learning environment to develop our players both on and off the field.

Mark Huelskoetter

5.0

SSL Associates has been a trusted advisor to Wenzak for many years. Their knowledge and valuable insights around tax and reporting impacts of business issues has helped us to navigate key decisions and stay focused on our core business. We greatly appreciate the personal approach and responsiveness of the entire team.

We’re Waiting to Hear From You

Take the next step towards securing your project's future with our specialized construction auditing services. Get in touch today to elevate your standards and secure project success!

1064 104th Street Suite 100, Naperville, Illinois 60564

get directions

Thank you! Your submission has been received!

Oops! Something went wrong while submitting the form.

FAQs

How can construction audit services ensure compliance across various contract types?

Construction contracts vary to suit different project requirements, and understanding these can help streamline construction audit services:

Guaranteed Maximum Price (GMP): Caps the project cost, with the contractor responsible for any overruns, unless the scope changes. Audits for GMP contracts focus on ensuring cost control measures and verifying that any overruns are legitimate and within scope changes.
Lump Sum Contracts: Offers a fixed total price for all activities, suitable when project details are clearly defined upfront. Audits here check that the project scope and deliverables are clearly documented and that payments align with project milestones.
Time and Materials Contracts: Costs are based on the actual time spent and materials used, ideal for projects where the scope is not clear at the start. Audits for these contracts involve detailed tracking of labor and material costs to ensure proper billing and cost management.
Unit Price Contracts: Costs are determined based on the quantities of items completed, useful for projects where the types of tasks are repetitive and quantifiable. Audits verify the accurate measurement of quantities and ensure that payments match the agreed-upon unit prices.

Cost-Plus Contracts: The owner pays the actual costs plus a fee for the contractor's profit, typically used when scope changes are anticipated. Audits focus on validating actual costs and ensuring the fee calculation is correct and justified.

Is there value in conducting audits on past construction projects?

Absolutely! Auditing past construction projects can offer significant benefits beyond financial recovery. While recouping funds after final payments can be challenging, the primary advantage is the opportunity to review and refine procedures and internal controls. These evaluations are invaluable for identifying strengths and weaknesses in a company's construction operations. Ideally, a company will learn from its past projects to improve its processes and make future projects more efficient. This proactive approach can potentially reduce the likelihood of costly errors and strengthen the overall function of the construction department, preparing it for future challenges.