External Construction Audit Services

The vendor is required to provide construction auditing services for construction manager-at-risk (CMR) and general contractor (GC) delivery methods in accordance with the terms, conditions, and requirements.
- Requirements include, but are not limited to, performing a review of billings on projects for compliance with the construction contract, amendments to the contract, procurement, response to procurement and terms of agreements. 
- Provide input to agency and monitor implementation of guidelines for cost tracking on the project:
•    Provide input to agency and guidance to CMR and GC regarding consistent project accounting and tracking methodologies. 
•    Provide input to agency regarding the establishment of acceptable schedule of values for the construction project.
- Assist ODR in validating appropriate general conditions payments as part of the monthly application for payment process:
•    Monthly billings for compliance with terms of contract agreement. 
•    Assist ODR reviewing monthly payment applications for payment requests as needed and review the underlying documentation to determine whether amounts are reimbursable and reasonable in accordance with the terms of the contract. 
•    Periodic review of vendor records to ensure CMR and GC subcontractor and purchase amounts align with the approved schedule of values. 
•    Confirm appropriate support for all general conditions and reimbursable payments.
•    Periodic review of vendor records to ensure hub expenditures are accurate. 
•    The CMR and GC subcontractor’s current schedule of values and compare to what is billed on the owner payment application.
•    The final CMR and GC application and certificate for payment for selected line items to the CMR and GC cost reports and schedule of construction costs incurred to date as submitted by the CMR and GC.
- Provide analysis of change proposals and change orders, included but not limited to:
•    Confirm that proposed changes are appropriate in terms of original scope of project. 
•    Review of subcontractor status reports to determine change order activity by subcontractor.
•    Review a sample of change order requests submitted by the CMR and GC and determine whether amounts are reimbursable in accordance with the terms of the contract.
•    Verification of appropriate markup per contract agreement
•    Confirmation of reasonableness of change proposal pricing. 
•    Review of change orders, and that any planned specifications and quantities are reconciled.
- Monitor and track project expenditures:
•    Review and provide recommendations to owner regarding efficient and effective project expenditure monitoring. 
•    Monitor payments for compliance with contractual terms and owner policy and procedures. 
•    Assist ODR in determination of “best value” subcontract selections. 
•    Assist ODR in tracking and confirming contingency status, allowances, buyout savings, and identified cost recoveries.
- Provide reviews to confirm the reasonableness of CMR and GC subcontractor(s) and consultant(s) estimates.
•    Analyze the CMR and GC accounting for “allowance” and “contingency” items and verify that they have been incurred in accordance with the terms of the contract. 
•    Review of subcontracts for allowances and back charges. 
•    Determine whether the CMR and GC charges for labor and labor burden, materials and equipment are in accordance with the terms of the contract agreement. 
•    The CMR and GC method for computation of any construction cost to be reimbursed requiring prior approval by agency if provided by the contract agreement.
•    CMR and GC and determine if there are any credits due from the CMR and GC related to discounts, rebates, sales of surplus material, dividends, and refunds or any nature and determine whether the credits have been properly applied for the benefit of agency. 
•    Review and assist in calculations of shared savings, when applicable. 
•    All specified bonds and insurance are actually purchased by the CMR and GC for the specified amount as stated in the contract agreement. 
•    The CMR and GC copies of subcontractor agreements between the CMR and GC and its respective subcontractors. 
•    Assess documentation for status of lien waivers and final lien waivers. 
•    Review for any job-owned equipment to ensure that appropriate credit is received for all equipment purchased and charged to the job.
- Attend various meetings at the owner’s request, including but not limited to:
•    Monthly pay application meetings. 
•    Meetings to resolve issues and payment concerns with CMR and GC, subcontractor, design professional, or consultant.
- Provide written reports on monthly basis as needed of activities and results of expenditure reviews, monitoring activities, and project cost tracking:
•    Written report summarizing the results of the reviews, any potential costs recovery items, and conclusions related to the objectives of the construction audit services. 
•    Documentation such as project expenditure progress report, analysis worksheets, document exhibits, and any other work performed to support conclusions.

- Contract Period/Term: 5 years
- Questions/Inquires Deadline: November 07, 2025