Almost everyone experiences cost or time over-runs during one’s professional life. And whilst some are very clear and easily resolved, some are less so. Sometimes, no one knows where the money went, no one can explain the over-use of strictly limited resources, and no one can explain why projected costs and actual costs are so glaringly different.
But we can.
Using our exemplary skills in the Energy and Resource Sectors, we are fully conversant in industry specific operations, and we know we can help you. We understand how contracts work, we understand the importance of communication between contracted parties, and we are fully aware of desires of both to deliver on the contract, whether terms are implied or specific. We go out of our way to learn about the uniqueness of your own contracts, and how best to deliver on them. We are also well versed in the conversion of contracts from fixed price to lump sum, mid-life though a project.
We tailor our service delivery for EPC Project audits accordingly to: circumstance (project time line or operational need); contract type (fixed-price or cost-plus) and total dollar value of the contract (minor or major project). Audit emphasis varies accordingly and the approach must be tailored to the entity. They may occur at various stages of a construction project. Common EPC contract audits include:
- Major Projects: During the life of a major development project, we recommend undertaking regular compliance or forensic examinations of all aspects of the contract, in order to provide you with a complete, transparent, picture of the financial management and operational performance of the contractor, thereby ensuring that, the agreement is being executed in accordance with the intent of all parties to the contract
- Two-phase audits: the first phase typically is scheduled near the beginning (such as at 20 percent project completion) and the second before final payment is made
- Monthly payment audits: these keep a close watch on contract cash outflows and help to resolve potential problems before they lead to delays and cost overruns
- Contract closeout audits: typically completed before final payment is made
In addition our mediation and arbitration team can help with any significant concerns. Contact us today about managing your EPC Contract risks or to see a list of Engineering companies we have audited please click here.
You can read more about Engineering, Procurement & Construction audits by downloading our whitepaper here.