COMMERCIAL SUCCESS
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HOW A CONSTRUCTION AUDIT CAN MINIMIZE COSTS AND RISKS
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s local distribution companies (LDCs) and their municipal shareholders develop assets and expand their services – often through non-regulated affiliates – they may find themselves engaging in an increasing number of construction projects. As they embark down this path, construction audits can be a critical means of avoiding costly bumps in the road. Because construction projects involve a lot of moving parts, many factors and risks can end up costing time and money. Anything from vendor invoice errors to weather delays, unexpected change orders to damaged equipment, can quickly cause costs to spiral out of control. A construction audit is a systematic review of a project to
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confirm that contractors and subcontractors are performing in line with their quoted scope, timelines and objectives. As such, it can greatly minimize the risks of a project being derailed.
Construction audits and project success
There are essentially four ways a construction audit can help ensure your project runs smoothly.
It keeps costs in check: Construction costs can be quite volatile throughout a project’s lifecycle. A construction audit can help you hold participants accountable and ensure they manage and invoice their costs efficiently and correctly. THE DISTRIBUTOR
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WINTER 2020-21
