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Capital Projects Contract Audit


  Client Challenge  
Our client, a premier healthcare institution, hired a general contractor to construct a research building and outpatient facility. Cost increases and schedule delays prompted management to take a closer look at the construction contracts.

Protiviti’s experienced professionals determined that a targeted audit would be most effective for the client’s needs. 

The audit focused on payment applications associated with the construction contracts between the owner and the contractors for a $25 million research building addition and a $100 million outpatient facility.

Protiviti’s professionals identified more than $4 million in contract exceptions.

Based on the audit, our client received a detailed report of the exceptions, which included:

  1. $2.6 million in partially unsupported documentation from the contractors
  2. $1.3 million in incorrect subcontract amounts charged by the contractors
  3. $190,000 in incorrect labor rates and hours charged by the contractors
  4. $130,000 in miscellaneous exceptions charged by the contractors \r\n
  5. $100,000 in incorrect materials and amounts charged by the contractors
How We Help Companies Succeed

Recent national surveys by the Construction Management Association of America indicate that 40 percent to 50 percent of major construction projects run longer than planned and incur significant cost overruns.

Protiviti's team of construction project specialists has assisted clients with improving control over their projects, creating more reliable project timelines and reducing their exposure to cost overruns.
​For additional information, please contact:

Dan Fagin
Managing Director

Tom Chambers
Managing Director
  About Protiviti  
Protiviti (www.protiviti.com) is a global consulting firm that helps companies solve problems in finance, technology, operations, governance, risk and internal audit, and has served more than 60 percent of Fortune 1000® and 35 percent of Fortune Global 500® companies. Protiviti and our independently owned Member Firms serve clients through a network of more than 70 locations in over 20 countries. We also work with smaller, growing companies, including those looking to go public, as well as with government agencies.
Named one of the 2015 Fortune 100 Best Companies to Work For®, Protiviti is a wholly owned subsidiary of Robert Half (NYSE: RHI). Founded in 1948, Robert Half is a member of the S&P 500 index.