Effective Auditing of Construction Activity
April 23-24, 2019 Bellagio – Las Vegas, NV Earn 16 CPE
This two-day course covers proven construction audit strategies and techniques to enhance your organization’s ability to effectively audit and control construction costs. Attendees will learn “how-to” effectively establish and implement audit coverage to achieve “risk-based” cost avoidance and/or cost recovery results.
“Very relevant – making me think about how to change my audit approach to be more effective.”
Recent EACA Attendee
SOLD OUT! Sign Up for Waiting List – REGISTER
Who Can Benefit From This Learning Experience
Owner organization representatives who are involved with auditing or administering construction activity including:
- Owner’s construction audit representatives (internal audit and/or external consultants)
- Owner’s construction management executives, project managers, contract administrators, construction contract accountants, procurement representatives and/or legal representatives
Types of Contracts Covered
The course will emphasize effective construction audit strategies and construction cost control techniques for projects involving the use of the following types of construction contracts:
- Cost plus FEE – Construction Manager at Risk- Guaranteed Maximum Price (GMP) contracts
- Cost plus FEE – Design-Build GMP contracts
- Cost plus FEE contracts with General Contractors (with or without a GMP)
- Cost Plus FEE contracts with major subcontractors/trade subcontracts (with or without a GMP)
- Lump sum and/or Unit price trade subcontracts or prime construction contracts
Owner’s Construction Auditors will learn specific “how to” techniques for conducting effective audits of their organization’s construction activity, such as:
- Issues to consider to help your organization avoid making costly mistakes when entering into construction contract agreements
- Key steps to ensuring the best value is received when the CM/GC contracts with subcontractors
- Critical process to ensure subcontractor change orders are fairly priced
- Process to control costs related to materials purchased by the Contractor
- How to structure your contract to ensure you do not overpay for contractor owned equipment
- Possible overcharges for third party equipment to watch out for
- How to avoid making excessive payments for subguard and/or contractor controlled insurance programs
- Methods to effectively minimize the loopholes in contracts that create opportunity for contractors to realize excessive hidden profits
- Management/construction audit partnering strategies to ensure construction cost controls are working as anticipated to benefit the project
- Owner’s Project Managers will learn specific key control points that will increase their ability to manage the costs of their construction projects
- Owner’s Project Managers will learn how to effectively partner their construction auditors to more effectively control the costs of their construction projects
Learn The Pros and Cons of
- Lump sum pre-construction services versus cost reimbursable pre-construction services
- Pre-established labor billing rates versus reimbursement of actual wages and verifiable labor burden
- Lump sum general conditions versus cost reimbursable general conditions
- Lump sum self-performed contractor work versus cost plus fee with GMP for self-performed contractor work
- Converting GMP contracts to lump sum contracts
- Supported payment applications versus percentage of completion payment applications
- Pre-agreed labor burden percentages versus reimbursement for actual defined labor burden costs
- Bonding both the prime contractor and the subcontractors
- Subcontractor default insurance (subguard) versus conventional performance and payment bonds
- Savings Sharing clauses versus no savings sharing clauses
- Worker’s Compensation and General Liability Insurance – Conventional insurance versus Contractor
- Controlled Insurance Programs (CCIP)
- Worker’s Compensation and General Liability Insurance – Conventional insurance versus Owner Controlled Insurance Programs (OCIP)
- Typical contractor fees for cost plus fee with GMP construction manager/general contractor projects of various sizes
- Whether or not to reimburse for general liability insurance or have it covered by Fee
- Typical charges for general liability insurance
- Typical charges for Subcontractor Default Insurance (subguard)
- Typical charges for Contractor Controlled Insurance Programs (CCIP)
- Typical charges for worker’s compensation when the contractor is self-insured and/or uses high deductibles
- Change order markup percentages allowed on subcontractor self-performed work and work performed by sub-subcontractors
- Actual wire and conduit costs versus public “book prices”
Introduction to Effective Auditing of Construction Activity
- Audit objectives related to controlling construction costs
- Project team roles and responsibilities
- Delivery systems – fast track, design build, conventional
- Contract procurement methods, types, and phases
Cost Plus and Time and Material Contracts – Typical Overcharges
- Design contract billings for time and reimbursables
- Billings for personal computer and/or mainframe computer time
- Construction contractor and/or construction manager billings for labor and labor burden
- Billings for contractor-owned equipment, third-party equipment rental, expendable tools, equipment and
- consumables, and material used during construction
- Transactions dealing with subcontractors
Auditing Construction Change Orders
- Typical overcharges in lump sum change orders
- Electrical change order – discussion exercise
- Change order labor and labor burden pricing
Auditing Lump Sum or Unit Price Contracts
- Quality and scope of work overcharges
- Substitution of materials or methods
- Not performing required services
- Not installing proper quantities
- Special types of lump sum contract overcharge situations
- Adjusting allowances
- Required bonds and insurance
- Improper charges for sales tax
- Special unit price overcharge situations
- Excessive quantities billed
- Improper measurement method used
- Inaccurate measurements
- Billings for excessive quantities actually performed
REGULAR SEMINAR REGISTRATION Fee = $1,195
Registration FEE is payable to:
Construction Audit & Cost Control Institute, Inc.
3941 Legacy Drive, Suite 204 #218A, Plano, TX 75023.
Registration FEE may be paid by check, MasterCard, Visa or American Express.
Program fee includes instruction, all program materials, breakfast and lunch each day and refreshment breaks.
Tuesday: 8:30 am – 4:30 pm
Wednesday: 8:30 am – 4:30 pm
Cancellation and Refund
Enrollment is limited to assure maximum opportunity for participation and exchange of ideas. Substitutes will be accepted until the program starts. Cancellations will be accepted up to 14 calendar days prior to program start without incurring a $95 late cancellation fee. Full fee is charged for failure to attend when enrollment has not been canceled as specified. Contact Lynn Runyon at Courtenay Thompson & Associates, 214-361-8346 or email@example.com
All participants are eligible to receive up to 16 Continuing Education Credits (CPE’s) to fulfill professional accreditation requirements. Field of Study: Auditing. Course Level: Basic. Group-live, lecture-style seminar; no prerequisites or advanced preparation required. For information regarding CPE, complaint, or program cancellation, please contact our office at 214-361-8346.
Courtenay Thompson & Associates is registered with the National Association of State Boards of Accountancy (NASBA), as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org
Bellagio – Las Vegas
Home of the magnificent Fountains of Bellagio and the Conservatory & Botanical Gardens – 2 of the top rated complimentary hotel attractions in the country!
Offers 19 world-class dining options from casual to contemporary to AAA Five-Diamond, 9 of which have an outdoor patio overlooking the Fountains of Bellagio. Bellagio is a luxurious Las Vegas hotel complete with casino, restaurants, spas and nightlife.
Most of our attendees stay at the hotel for two nights and a few opt to stay over a third night.
OR call Bellagio Reservations: 1-888-987-6667
Please note – our group rate has now expired.
If you have any problems getting the reservation you desire at the Bellagio, please contact us for assistance.
For Bellagio Restaurants, Night Life, Casino, Amenities: www.bellagio.com
Degas Meeting Room
3600 Las Vegas Blvd South
Las Vegas, NV 89109
Rich Townsend is a principal of the consulting firm R. L. Townsend & Associates, LLC, which provides construction audit and construction cost control consulting services to Owners.
Since 1985, Mr. Townsend has been the instructor for the seminar entitled “Controlling Construction Costs” and “Effective Auditing of Construction Activity” sponsored by Courtenay Thompson & Associates. He has also instructed in-house seminars related to construction contract audit and construction cost control for a wide variety of organizations and industries throughout the United States and Canada.
Prior to starting his consulting firm, Rich spent 13 years with the auditing department of a major retail corporation. During his internal auditing career (1971-1984), he served in several staff and audit management positions with a specialization in audits of construction contract activity.
Mr. Townsend is a Certified Internal Auditor (CIA), a Certified Public Accountant (CPA), and Certified Construction Auditor (CCA). He currently serves on the advisory board for The National Association of Construction Auditors.
He is a graduate of Waynesburg College (Waynesburg, Pennsylvania) where he obtained a Bachelor of Science Degree with a major in accounting.
Reviews from Seminar Participants
“Opened my mind to new thoughts in construction auditing.”
“This course was one of the best audit classes taken in a long time. Valuable and relevant.”
“I learned so much in this course! It is extremely helpful to prepare me to effectively audit a construction project.”
“Very relevant – making me think about how to change my audit approach to be more effective.”
“Overall the information was on target. Very beneficial.”
“Great information, especially regarding lump sum contract/COS.”
Regular Seminar Registration Fee = $1,195.00
Wait List: Register Here to Be Added to our Waiting List
To Register by Telephone: Call Marie Jones at (254) 736-0309
To Register by Fax: Click for Faxable Registration Form
Need Assistance: Contact Marie Jones through the chat box (bottom right of screen) or Email: firstname.lastname@example.org