When is the right time to bring on a Construction Auditor

It isn’t uncommon for an auditor to be hired after construction has been completed. This can still be very beneficial as an audit of the invoices will likely result in the discovery of overbillings and the Owner will be able to reclaim those dollars.

A better option would be to bring an auditor on earlier in the project.  There are multiple benefits to this.  The primary benefit is that it is easier to recoup overbillings by crediting the amount due on future invoices than it is to get a contractor to write a check.

Another benefit is that an auditor can save money outside of just the invoice reviews.  For example, an auditor will be able to question costs in a change order before it is issued.  Cash flow can also be a big issue.  An auditor can confirm the amount being billed is currently owned.  An owner paying too early can cost millions in potential returns from other investments, especially on larger projects.

The ideal time to bring on an Auditor is before a project starts.  A good auditor should be able to assist with the RFP stages of the project.  Construction auditors with a lot of experience tend to know areas of the contract that Construction Managers and the trades take advantage of, and can help modify the contract to better protect the owner from hidden profit centers in those areas.

If you have any questions with your projects and would like to know how we can help, please feel free to contact us.