All companies have contracts with third party vendors. A contract compliance management program is a key success factor for any company. UHY Advisors’ Contract Compliance professionals identify overbillings and recoveries and can assist you with the collection of the overbillings from your vendors.
Vendor & Construction Audits
UHY Advisors’ Vendor and Construction internal audit professionals analyze third-party contracts you use to manage your business activities (construction, labor providers, service providers, leases, volume purchasing agreements, etc.). We assist you in prioritizing key contract risk areas by performing a detailed review of documentation to determine if activities are conducted in accordance with contract requirements and to recover over-billed costs.
Typical risk areas that our clients encounter in their major construction contracts, labor, and service agreements include:
- Labor and equipment rates billed at higher rates than contracted (by position levels, straight time calculations, and overtime calculations)
- Excess labor charges related to unauthorized overtime, charges for other activities, and charges for transferred or terminated employees
- Labor mark-ups in excess of contracted rates, inaccurate calculation of mark-ups or rate build ups and/or application of field personnel mark-ups to home office personnel
- Excess or inaccurate per diems (per diems paid in excess of contractual requirements, unauthorized increases to per diems
- Off contract bonuses billed by the vendor, including holiday bonuses, incentive bonuses, etc.
- Excessive expenses for entertainment, travel, social gatherings, flight upgrades, office televisions and appliances, and office meals/food
- Lack of supporting documentation required per contract, including timesheets, receipts, third party invoices, trip tickets, etc.
- Duplicate third party billings, such as materials, third party labor, expenses, etc.
- Discounts not passed through from subcontractors and vendors, including volume discounts
We help our clients mitigate their contractual risks and benefit from a variety of cost saving measures, including:
- Reimbursement from overcharges
- Improvement in return on investment
- Identification and mitigation of risks in contracts
- Improvement in internal controls and processes
- Standardization and enhancement of contracts
- Enhancement in relationships with key business partners
- Identification and establishment of preferred vendors
Our experienced Vendor and Construction Audit Professionals are ready to assist you today in saving valuable dollars that you need to run your company.
UHY Advisors has a proven contract compliance audit methodology. We can review any contractual agreement that you have concerns with. Some of the key contracts and contract provisions we audit include: