Definition | Methodology | Areas of Focus | Benefits
Why is Construction Auditing Important Today
Deloitte & External Construction Surveys
Nearly 75% of respondents experienced some degree of cost overruns and schedule delay.
Fraud/waste/abuse accounts for at least 10% loss of project value globally.
Definition
Systematic and objective examination of construction-related systems, practices and processes and provide an opportunity to introduce sound and effective cost management controls and promote best practice standards of construction management.
Methodology
- Phase 1: Review of the construction project proposal, and completion of due diligence and initial risk assessment
- Phase 2: Pre-construction engagement to identify adequacy of critical controls to mitigate project schedule delays
- Phase 3: Mid-construction engagement to review progress and construction quality
- Phase 4: Post-completion review to assess the project closeout and subsequent Facilities Management once the facility is commissioned for use
As illustrated in the chart, the sooner the audit intervention, the greater the cost savings in the construction project.
Areas of Focus
Benefits
Assess the efficiency and effectiveness of project-wide implemented systems and procedures including project governance and oversight
Instil accountability structures and relationships as well as overall management stewardship
Evaluate the overall quality of the construction including materials used and the “end-product”
Minimise risk ensuring that the quality of the project meets the expectations of the Imamat and AKDN/Jamati Institutions
Minimise construction delays and any cost overruns
