Construction audit (technical and financial appraisal) implies a complex of technical and financial controlling procedures aimed at protecting the financial interests of the investor, creditor or the construction project owner.
Construction audit is carried out in order to check the quality and volume of construction works (completed or still underway), and also for comparison of the real value of completed works and used construction materials and the documented data supplied by the contractor.
Depending on the client’s goals we perform the following kinds of construction audit:
- Construction appraisal of quality, volume and cost of works, carried out on the site as of the date of audit.
- Regular construction appraisal of the site with optimum periodicity (ex. quarterly) in the course of the construction, repair or reconstruction works, including:
- work quality inspection;
- examination of cost estimate documentation, provided by the contractor;
- comparison of the data provided by the contractor with real volumes and cost of the work and used materials.
Construction audit includes:
- appraisal of quality and volume of the completed work;
- appraisal of compliance of the used construction materials with the project requirements;
- appraisal of compliance of the real market value of the used materials and the accomplished works with the data in the cost estimate documentation, provided by the contractor;
- appraisal of compliance of the factual expenses with the planned figures stated in the project;
- evaluation of the degree of constructional object readiness, that is the ratio of the work carried out by the time of audit to the overall volume of work planned for the project;
- evaluation of the troubleshooting cost as of the day of audit.
Technical appraisal (technical supervision) is a complex of controlling and monitoring measures to provide construction or finishing operations in full compliance with the construction norms and design objectives in the project terms and volume with high quality.
Supervision over construction and finishing works allows to:
- Prevent overrating based on deliberate overpricing by the contractors.
- Provide high quality of construction works, prevent building deformations and failure in the first year of maintenance or often revealed before commissioning.
- Exclude hidden defects of construction and utility facilities which are hard to diagnose and reveal during the building maintenance or implies additional significant building examination expenses.
- Prevent the use of cheap construction materials of low quality by the contractors, which will result in constructions load bearing capacity decrease and in some cases poses a serious threat to the health of the people in the building.
- Complete the construction works strictly within the established time limit, thus accomplishing the project with minimum expenses.
- Exclude breaches in the as-built submissions, that may complicate the work of technical services in the further building maintenance.
- Guarantee the accomplishment of work by contractors in full compliance with the existing construction norms and regulations.
- Guarantee project execution within the budget:
- engagement of supervision service allows the investors/customers save 30% to 50% of the project execution cost.
- engagement of an independent technical supervision service in construction process in 98% allows to prevent failure to meet the deadlines.
- timely engagement of technical supervision specialists in the construction works allows to eliminate numerous cases of incompetent use of cheap non-projected construction materials by the contractors (happens in 80-90% cases when actions of contractors are not monitored by technical supervision engineers).
- Production technology appraisal is a complex of measures aimed at preliminary study of the current condition of new manufacture development project or modernization of the existing project based on implementation of new technologies and resources.
Production technology appraisal allows achieving the following goals:
- Analyze technological readiness of the project at the investment stage, which allows minimizing the risks and revealing uncompleted aspects of technical and technological phases of the project.
- Analyze the resources of the production process of the project from Research and Technological Development stage till the stage of commercial manufacture of goods. Analysis of recourses normally includes:
- Analysis of initial production technology and technical documentation:
- analysis of existing process engineering and design documentation, samples test reports and other documents related to the project;
- description of the planned production scheme; описание планируемой технологической схемы производства;
- Analysis of the project prime powers:
- analysis, identification of needs, statement of needs and the necessity of application of the equipment suggested in the projects in the framework of the production process;
- evaluation of equipment sufficiency for the stated production capacity;
- analysis and statement of compatibility of the suggested equipment;
- recommendations based on the results of design and engineering production preparation.
- Identification and analysis of needs for main types of required raw materials, semi-processed and other materials used for the project, including suppliers of these materials:
- analysis of possibility to provide the business with raw materials;
- analysis of risks related to shipment of goods and parts;
- evaluation of calculated needs for raw, semi-processed and other materials on condition of full utilization of manufacture capacity.
- Identification and analysis of needs for energy and labor resources:
- evaluation of calculated needs for energy and labor resources on condition of full utilization of manufacture capacity;
- analysis of HR qualification demands, manufacture-related qualified labor issues;
- analysis of experience and plans for staff training in the course of the planned technology transfer.
- Identification and analysis of the current calculated manufacturing cost of one product unit considering full utilization of production capacity.
- Identification and analysis of requirements for manufacturing facilities, production areas, technical infrastructure, norms and volumes of communications, transport accessibility.
- Identification and analysis of requirements for ecological and overall manufacturing security, necessity to obtain authorization documentation.
Independent qualified appraisal of preparation and readiness level of production, technical, resource and organizational aspects of the project.