Policies & Procedures for New Construction, Renovation and Capital Maintenance Projects
- Review with CM internal control procedures for monitoring project costs including change orders and variances to budget. Review should include interview of applicable CM personnel, walk-throughs of applicable transactions and review of generated reports.<
- Review any unit price contracts for proper approvals, supporting documentation for amounts billed and that overhead and profits do not exceed allowable rates.
- Establish the procedures for change orders and review change orders for supporting documentation, including billings, documentation of work completion and approvals. Document procedures for reviewing and processing trade contractor payments.
- Review a sample of trade contractor payments including supporting documentation, approvals and adherence to processing procedures.
- Determine that CM has performed any work other than the General Conditions and determine that proper approval was obtained.
- If applicable, review monthly statement for appropriate percentage for overhead and profit.
- Determine the reasonableness of costs and determine that they do not exceed lowest bid for work from trade contractors.