Construction Audit Seminar – Virtual (2025) - The Construction Audit and Cost Control Institute, Inc.

What Owner Representatives Should Know About
Managing and Auditing Construction Contract Activity

3-Day Virtual Seminar | Earn 12 CPE Credits

This 12-hour virtual seminar will be held in 2025. The date will be announced on June 1, 2025.
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See below for details including seminar content, CPE, reviews, etc.

Outline | Fee | CPE | Instructors

This interactive virtual seminar will be conducted via Zoom in three 4-hour sessions. Managing construction activity effectively for large complex projects requires experience and special knowledge. Attendees will learn some of the most important ways to improve their construction contracting methodologies to mitigate some of the significant mistakes Owner organizations often make which can cost them millions of dollars in excess construction costs.

Earn 12 NASBA-Approved CPE credits.

Program Schedule

Part 1: Date TBD – 4 hours – 4 CPE (10:30 am to 2:30 pm CT)

Part 2: Date TBD – 4 hours – 4 CPE (10:30 am to 2:30 pm CT)

Part 3: Date TBD – 4 hours – 4 CPE (10:30 am to 2:30 pm CT)

All sessions will be held via Zoom 10:30 am – 2:30 pm CT – Presented from Dallas, TX
8:30 am – 12:30 pm PT 11:30 am – 3:30 pm ET
This is a live presentation only. Any recordings made will be for our records only.

Who Should Attend

Owner’s construction management executives
Owner project managers
Owner contract administrators
Owner construction contract procurement representatives
Owner legal representatives
Owner’s construction audit representatives (internal audit and/or external consultants)

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

Attendees Will Learn

How to avoid making costly mistakes when entering into construction contract agreements
Key steps to help ensure 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 limit exposure to potential excessive billings for contractor-owned equipment
Possible overcharges for third party equipment to watch out for
How to avoid making excessive payments for Subguard® (Subcontractor Default Insurance) and/or Contractor Controlled Insurance Programs (CCIP)
Methods to effectively minimize the loopholes in contracts that create opportunities 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 problems to watch out for when managing their projects to avoid significant overpayments to their construction contractors
Owner’s Project Managers will learn how to effectively partner with their construction auditors to prevent significant overcharges and/or overpayments going undetected

Learn The Pros and Cons of

Cost reimbursable pre-construction services versus Lump Sum payments for 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 aka 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)

Other Learning Points To Be Covered

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 material pricing and labor analysis for trade subcontract change orders

Course Outline

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

Program Fee

Regular Registration Fee = $995.00

Program fee includes instruction and all program materials.

Cancellation and Refund

If you register for a virtual training and are unable to attend, please notify us by email and we will apply your credit toward any future training. For information regarding refund, concerns and/or program cancellation please contact Marie Jones at 254-736-0309 or email [email protected].

CPE

All participants are eligible to receive up to 12 Continuing Education Credits (CPE’s) to fulfill professional accreditation requirements. Participants will receive 1 CPE credit for every 50 minutes in attendance. Field of Study: Auditing. Course Level: Basic. Group-Internet, lecture-style seminar; no prerequisites or advanced preparation required. For information regarding CPE, complaint, or program cancellation, please contact Marie Jones at 254-736-0309 or Rich Townsend at 972-679-6762 or email [email protected].

Construction Audit & Cost Control Institute (CAACCI) 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

Instructors

Rich Townsend is Co-Owner of the consulting firm R. L. Townsend & Associates, LLC. The firm provides construction audit and construction cost control advisory services to a wide variety of organizations throughout the United States.

Mr. Townsend is a Certified Internal Auditor (CIA), a Certified Public Accountant (CPA), and a Certified Construction Auditor (CCA). He currently serves on the advisory board for The National Association of Construction Auditors. He has been providing professional development training seminars through the Construction Audit & Cost Control Institute, Inc. since 2008. He is a graduate of Waynesburg University (Waynesburg, Pennsylvania) where he obtained a Bachelor of Science Degree with a major in accounting.

Ashley Humphries is a Senior Construction Auditor at R. L. Townsend & Associates, LLC. She has worked for the firm for the last nine years and she has extensive experience working on construction audits of major construction projects for private and public universities, university healthcare organizations, public school districts, industrial, and real estate development.

She has been part of our Construction Audit & Cost Control Institute instructor team for the last several years. She has also participated in presentations at the National Association of Construction Auditors annual conferences.

Ashley is a Certified Internal Auditor (CIA) and a Certified Construction Auditor (CCA). She is a graduate of the University of North Texas (Denton, Texas).

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