How Quantity and Billing Audits can help ascertain quantities and protect bottom lines is illustrated aptly in a bill verification job carried out by CQRA for a project’s facade design.
The Case
The client and vendor had disputed on the billed amount and the situation called for verification by a third party auditor. Upon thorough checking of all material quantities, CQRA experts found excess material quantity claims and specification mismatches between the items in the Bill of Quantities and those ordered. These were the reasons for an increased budget with a variation of close to a Crore of Rupees.
This positive outcome prompted the client to audit the entire construction project’s Quantity and Billing with CQRA.
With budgets going overboard, Quantity and Billing Audits verified that previous billed amounts by vendors had been incorrect. This was a case where the project was almost complete and the vendors had balance payments retained with the client. However, it is a good practice to incorporate Quantity and Billing Audits during the construction process to protect the final bottom line of projects.
Benefits of Quantity and Billing Audits Explained
Construction Quantity and Billing Audits can be said to be the very foundation of a successful project since this intervention helps keep the budget on track, saving the company from losses that are entirely preventable. Apart from protecting the financial investment of the client, audits keep disputes between various vendors, contractors and clients at bay by verifying the accuracy of material quantities and costs. These audits help identify and correct overcharges, under billings, and fraudulent activities, ultimately improving project efficiency and streamlining the finances of the company.
Apart from Cost Control and ensuring accuracy of billed amounts, here are other ways in which Quantity and Bill Audits are essential for projects –
Fraud Detection – Billing audits can uncover instances of dishonest billing practices or other fraudulent activities, protecting the owner’s investment.
Contract Compliance – Audits verify that all parties involved in the construction project are meeting their contractual obligations, preventing future disputes.
Budget Management – Billing Audits help identify and address mismatches between actual spending and budgeted amounts.
Transparency and Accountability – Audits promote transparency and accountability within the construction process, fostering trust between the owner and the contractor, reducing chances of disputes.
Improved Cash Flow – Accurate and timely billing, verified by audits, helps ensure stable cash flow during the project cycle and streamlined billing improves resource utilization.
Quantity and Billing Audits is an important tool for construction companies to safeguard their finances and establish accountability in their projects.
Contact CQRA to streamline the billings in your construction project with third party Quantity and Billing Audits.