CONSTRUCTION AUDIT

CONSTRUCTION AUDIT

Construction audit (technical-financial or feasibility audit) is an independent expert assessment of the technical and financial indicators of an investment project, which makes it possible to form objective information about the progress of its implementation. Construction audit allows you to assess the adequate cost of construction and design work, predict the project budget, predetermine events related to inadequate quality of construction and installation works, failure to meet the deadlines and volumes of their implementation, as well as misuse of invested funds. Thus, construction audit is an effective risk management tool.

 

 

A construction audit is required in the following cases:

In case of making a decision to invest funds;

In case of acquiring an object under construction;

When a wear assessment is required;

In case of raising credit funds for the construction of an object;

In case of solving controversial issues between project participants;

In case of false reporting;

In case of misuse of funds and tangible assets;

In case of stealing tangible assets;

In case of lagging behind construction deadlines and unscheduled downtime;

In case of occurring unplanned adverse events;

In order to control construction work throughout its entire length, until the facility is put into operation.

Timely control over the implementation of the project will help to avoid unplanned financial losses and additional production costs, since financial and technical supervision is carried out during the construction audit.

 

The main stages of the construction audit:

To get acquainted with the project, analysis of the submitted documentation;

Financial and technical expertise of the construction project;

Processing and analysis of identified deviations and violations;

Formation of a report based on the results of the audit.

Construction audit, technical and financial audit, technical and economic audit is an assessment of the financial component of construction. It allows you to control the spending of both investment and credit funds.

Technical expertise (construction expertise) is a verification of the timing, volume and quality of construction work, as well as an analysis of compliance with the current legislation of Georgia. Technical supervision also includes verification of the availability and completeness of design and permit documentation, obtained approvals and related documentation.

 

During the technical examination, the following is carried out:

Verification of compliance with the legislation regulating construction activities in the territory of Georgia;

Analysis of the implementation of the work schedule;

Quality control of construction and installation works and materials used;

Checking the quality of implementation of executive documentation;

Performing control measurements of the work performed. Comparison of measurement results with reporting documentation;

Analysis of the validity of additional work;

Control over the technological sequence of construction processes; Analyzing of the write-off of materials in accordance with consumption rates and project documentation (Form М-29).

 

Who can use the services of a construction audit:

Banks

Investment funds

Developers

Investment and construction companies