Construction Contract Compliance & Cost Audits

We perform detailed reviews of contractor billings and cost submissions to confirm compliance with contract terms, pricing provisions, and applicable regulations.

Typical audit scope includes:

  • Progress payment and pay application review

  • Verification of labor, equipment, and material charges

  • Review of general conditions and indirect costs

  • Testing of time-and-material and force-account work

  • Change order pricing and cost support evaluation

  • Allowance, contingency, and retainage review

  • Final account and project close-out audits

Our audits focus on identifying unsupported, unallowable, or non-compliant costs before payment — helping owners address issues early rather than after project completion.

Owner’s Representative Cost Oversight (In-Flight Projects)

For active projects, AI Audit, LLC serves as an owner-side cost oversight resource, complementing — not replacing — the construction manager or program manager.

We work exclusively on behalf of the owner to provide independent financial review while projects are underway.

Owner’s-rep cost oversight services include:

  • Ongoing review of contractor pay applications (pencil-copy and final)

  • Real-time monitoring of change orders and cost trends

  • Contract compliance checks throughout construction

  • Early identification of cost risks or documentation gaps

  • Support to owner project teams during billing review

  • Independent validation prior to approval and payment

This approach allows owners to maintain control over costs as decisions are being made, rather than relying solely on after-the-fact audits.

How Owners Typically Start

Most clients begin with a fixed-fee pilot audit on one active or recently completed project. Pilot audits allow owners to evaluate value, process fit, and findings before expanding services across additional projects or programs.

Initial reviews can be performed using owner-held records only, with no disruption to project delivery.

Who We Support

AI Audit, LLC supports:

  • Public entities and authorities

  • Healthcare systems

  • Universities and higher education institutions

  • Corporate and institutional owners with significant construction spend

Why Owners Use Both Roles

Construction managers are responsible for delivering the project. Contract Compliance cost oversight ensures the project is delivered in accordance with the contract and financial controls.

By engaging AI Audit, LLC alongside an existing construction manager, owners gain:

  • Independent financial validation

  • Early identification of cost risks

  • Improved billing accuracy

  • Stronger documentation and audit trails

  • Reduced likelihood of disputes at close-out

Our role adds an additional layer of assurance — without interfering with construction operations.

How This Works in Practice

  • AI Audit, LLC collaborates with owner project teams

  • Reviews are performed using project records

  • Contractor and supplier relationships are based on respect with the purpose of collaboration and process improvement

  • Findings are communicated clearly and constructively

  • Final approval authority remains with the owner

This structure preserves clear responsibilities while strengthening cost governance throughout the life of the project.