Construction audit in UAE involves a process that goes beyond cursory checks in order to make sure specifications and guidelines are being followed. A full construction audit that is done by specialists offers projects in UAE with structured reviews on the whole construction process while putting the focus on keeping costs of projects within the set budget.
An added element to a checklist of seasoned professionals on construction audit in UAE is planning for risk management, which includes making sure best practices of the industry are being followed, ensuring there’s financial control, and the monitoring of invoices. As a matter of fact, managing risks is key for auditors in Dubai keeping projects within budget as an increasing number of risks results in costs skyrocketing. The services of a construction auditor in UAE becomes more critical as a business grows and works in meeting the needs and requirements of its clients and investors.
What exactly is construction audit?
A construction audit in UAE is the review of a project’s various aspects in order to make sure that they are all performing as planned and the project is implemented as per contract provisions. Because construction projects in the country typically involve different businesses performing different concurrent tasks, the process of construction audit becomes a useful tool in keeping the entire project under budget and on track.
What are the reasons why the construction audit is necessary?
Construction audits may be done as per the request of government officials or project stakeholders. Here are the top reasons why they are vital for a construction project in UAE:
Supports the recovery of costs
Construction site expenditures can vary throughout the process. If a project does not have any proper controls set in place, then it can quickly spiral way out of control. A lot of construction disputes arising out of projects exceeding the budget agreed. A construction audit in UAE will be able to help in discerning, as per the construction agreement, as to which party is responsible for the costs and the audit will also help the project stay within the budget.
Enhances internal controls
A huge deal of conflict which arise on construction sites can be derived from the inability in staying within the project scope that was agreed by the concerned parties. A project manager is assigned with making sure all involved parties are doing their tasks, that safety and security measures are all employed and followed by teams, and that the project plan is followed accordingly. A construction audit in UAE will ensure that a project manager is doing his or her job correctly.
Learn More: Audited Financial Statements
Determines the progress of the project
A construction audit is absolutely critical as it helps make sure that the timeline agreed as per the construction agreement is met. The audit will be going to the construction site, speak with all personnel in getting a precise feel as to which phase the project is in, and review the progress of the job. The specialists will assess whether the construction project is going as planned or if it is ahead or behind of schedule.
Financially speaking, a construction company bills clients as per the completion level of a project. A construction audit will be able to provide information to parties on whether or not a project stage calls for an invoice.
A construction auditor will be able to review processes that are being implemented in dealing with equipment, hazardous materials and even pathways in order to ensure that a safe and secure environment has been provided for all the construction workers.
Read more: Audit for Profit and Loss Statements in UAE: Why It Is Needed
Do I get a return on investment with a construction audit?
A construction auditor in UAE can help in ensuring the project is on schedule and moving forward. Any delay can result in additional costs especially when a term for the contract is extended. It is, therefore, essential to have someone monitor time management of the construction. Because of the need in ensuring project costs are down from the start and there is dedication in getting the construction completed properly and timely, paying for a construction audit that is provided by a seasoned professional can offer a great return on investment.
If you hire a seasoned or reputable Audit firm in Dubai, the construction audit will include a quoted price with additional services that will prove to be helpful in achieving your requirements. There are Auditing firms in UAE that can combine construction audit service with studies on cost segregation for the build. The studies will help the business in reclassifying assets in order to attain more tax saving.
A construction project entails a huge capital investment, which is why it is only right to trust experts in assessing if it is going as planned. Contact us here in Farahat & Co for more details!