The vendor required to provide capital project delivery independent audit of the city’s capital project delivery processes.
1. Budget planning and development
• Evaluate the process for establishing project budgets, including soft and hard costs, risks, and escalation through project delivery.
• Assess what budgets are based on: cost estimates, historical data, or market analysis.
• Identify how confidence ratings, and associated appropriate contingencies, are applied based on scope clarity and definition, appropriate confidence level for concept through final design stages.
• Determine whether project budgets include adequate provisions for contingencies and risk factors.
2. Cost estimation and pricing
• Assess whether cost estimates are prepared using industry-standard methods
• Evaluate when independent cost estimates should be performed and reconciled against contractor bids.
• Identify guidelines for the level of cost estimate (class 1-5) appropriate for the stage of design.
3. Contract procurement and solicitation risks
• Identify potential risks and consequences of not following city, state, and federal procurement laws, procedures, and requirements for construction projects.
4. Contract form, terms, and conditions
• Evaluate the criteria and drivers used to select the contract delivery method (e.g., design-bid-build, construction-manager-at-risk, design-build, job-order-contracting).
• Review contract templates and standard terms and conditions, including but not limited to:
o Change order procedures and approvals
o Payment terms, retainage, and milestone verification
o Dispute resolution provisions
o Termination clauses (for cause and convenience)
o Warranties and defect liability requirements
o Compliance with laws, codes, safety, and labor standards
o Performance and liquidated damages provisions
o Audit rights and records retention requirements
o Scope definitions, deliverables, milestones, and performance metrics
o Risk management provisions, including insurance, bonding, and penalties
5. Contract administration
• Evaluate the processes used to manage and monitor active construction contracts.
• Review procedures for tracking contractor compliance with deliverables, timeliness, budgets, contingencies, and allowances.
• Assess controls for amendments, extensions, and change orders.
• Review segregation of duties to minimize risk of fraud, waste, or abuse.
6. Cost management and payments
• Review processes to ensure accuracy and legitimacy of contractor invoices and payments.
• Assess controls to detect and address budget overruns, delays, and scope changes.
7. Performance monitoring
• Evaluate monitoring of project performance against agreed milestones and deliverables.
• Assess implementation and documentation of quality assurance measures.
• Review processes for inspections, progress reports, and updates.
8. Risk management
• Identify contributors and risks to scope, schedule, and budget from project concept through delivery.
• Review best management practices for project controls through design.
• Identify risks related to contractor selection, scope changes, project delays, cost overruns, and non-compliance.
• Evaluate contingency planning and risk mitigation strategies.
9. Documentation and record keeping
• Review completeness, accuracy, and accessibility of construction contract records.
• Ensure documentation exists for all stages of the contract lifecycle, from procurement through closeout.
10. Staffing and resource loading
• Review industry norms and standards for construction management staffing dependent on contract method.
• Develop guidelines for staffing considering project complexity, high visibility, and use of external construction management and administrative support.
- Contract Period/Term: 1 year
- Questions/Inquires Deadline: January 20, 2026
