Effective Auditing of Construction Activity 

September 11-12, 2017
Dallas, Texas

 Two day course covers proven construction audit strategies and techniques to enhance your organization's ability to effectively audit and control construction costs.  Attendees will learn "how-to" effectively establish and implement audit coverage to achieve "risk based" cost avoidance and/or cost recovery results. 

Course Outline | Program Fee | Register |  CPE | Accommodations | Venue |  Instructor | Brochure | Contact Us | Reviews

Limited Seats Available - REGISTER NOW

Who Can Benefit From This Learning Experience

Owner organization representatives who are involved with auditing or administering construction activity including:

  • Owner's construction audit representatives (internal audit and/or external consultants)
  • Owner's construction management executives, project managers, contract administrators, construction contract accountants, procurement representatives and/or legal representatives

Types of Contracts Covered

The course will emphasize effective construction audit strategies and construction cost control techniques for projects involving the use of the following types of construction contracts:  

  • Cost plus FEE - Construction Manager at Risk- Guaranteed Maximum Price (GMP) contracts,
  • Cost plus FEE - Design-Build GMP contracts
  • Cost plus FEE contracts with General Contractors (with or without a GMP) 
  • Cost Plus FEE contracts with major subcontractors/trade subcontracts (with or without a GMP)
  • Lump sum and/or Unit price trade subcontracts or prime construction contracts

Learning Objectives

Owner's Construction Auditors will learn specific "how to" techniques for conducting effective audits of their organization's construction activity, such as:

  1. Issues to consider to help your organization avoid making costly mistakes when entering into construction contract agreements
  2. Key steps to ensuring the best value is received when the CM/GC contracts with subcontractors
  3. Critical process to ensure subcontractor change orders are fairly priced
  4. Process to control costs related to materials purchased by the Contractor
  5. How to structure your contract to ensure you do not overpay for contractor owned equipment
  6. Possible overcharges for third party equipment to watch out for
  7. How to avoid making excessive payments for subguard and/or contractor controlled insurance programs
  8. Methods to effectively minimize the loopholes in contracts that create opportunity for contractors to realize excessive hidden profits
  9. Management/construction audit partnering strategies to ensure construction cost controls are working as anticipated to benefit the project  
  10. Owner's Project Managers will learn specific key control points that will increase their ability to manage the costs of their construction projects
  11. Owner's Project Managers will learn how to effectively partner their construction auditors to more effectively control the costs of their construction projects 

Learn The Pros and Cons of

  1. Lump sum pre-construction services versus cost reimbursable pre-construction services
  2. Pre-established labor billing rates versus reimbursement of actual wages and verifiable labor burden
  3. Lump sum general conditions versus cost reimbursable general conditions
  4. Lump sum self-performed contractor work versus cost plus fee with GMP for self-performed contractor work
  5. Converting GMP contracts to lump sum contracts
  6. Supported payment applications versus percentage of completion payment applications
  7. Pre-agreed labor burden percentages versus reimbursement for actual defined labor burden costs
  8. Bonding both the prime contractor and the subcontractors
  9. Subcontractor default insurance (subguard) versus conventional performance and payment bonds
  10. Savings Sharing clauses versus no savings sharing clauses
  11. Worker's Compensation and General Liability Insurance - Conventional insurance versus Contractor Controlled Insurance Programs (CCIP)
  12. Worker's Compensation and General Liability Insurance - Conventional insurance versus Owner Controlled Insurance Programs (OCIP)

Benchmarking Topics

  1. Typical contractor fees for cost plus fee with GMP construction manager/general contractor projects of various sizes
  2. Whether or not to reimburse for general liability insurance or have it covered by Fee
  3. Typical charges for general liability insurance
  4. Typical charges for Subcontractor Default Insurance (subguard)
  5. Typical charges for Contractor Controlled Insurance Programs (CCIP)
  6. Typical charges for worker's compensation when the contractor is self-insured and/or uses high deductibles
  7. Change order markup percentages allowed on subcontractor self-performed work and work performed by sub-subcontractors
  8. Actual wire and conduit costs versus published "book prices" 

Course Outline

Introduction to Effective Auditing of Construction Activity

  • Audit objectives related to controlling construction costs
  • Project team roles and responsibilities
  • Delivery systems - fast track, design build, conventional
  • Contract procurement methods, types, and phases

Cost Plus and Time and Material Contracts - Typical Overcharges

  • Design contract billings for time and reimbursables
  • Billings for personal computer and/or mainframe computer time
  • Construction contractor and/or construction manager billings for labor and labor burden
  • Billings for contractor-owned equipment, third-party equipment rental, expendable tools, equipment and consumables, and material used during construction
  • Transactions dealing with subcontractors

Auditing Construction Change Orders

  • Typical overcharges in lump sum change orders
  • Electrical change order - discussion exercise
  • Change order labor and labor burden pricing

Auditing Lump Sum or Unit Price Contracts 

  • Quality and scope of work overcharges
  • Substitution of materials or methods
  • Not performing required services
  • Not installing proper quantities
  • Special types of lump sum contract overcharge situations
  • Adjusting allowances
  • Required bonds and insurance
  • Improper charges for sales tax
  • Special unit price overcharge situations
  • Excessive quantities billed
  • Improper measurement method used
  • Inaccurate measurements
  • Billings for excessive quantities actually performed

Program Fee


Registration FEE is payable to:

Construction Audit & Cost Control Institute, Inc. 
3941 Legacy Drive, Suite 204 #218A, Plano, TX 75023.  

Registration FEE may be paid by check, MasterCard, Visa or American Express. 

Program fee includes instruction, all program materials, breakfast and lunch each day and refreshment breaks.


Click Here to Register Online

To Register by Fax:   Click Here to Download Faxable Form

To Register by Telephone:  Call Marie Jones at (254) 736-0309

Register a Group:  Contact Marie Jones through the chat box (bottom right of screen) or E-mail marie.jones@caacci.org

Program Schedule

Monday:  8:30 am - 4:30 pm

Tuesday:  8:30 am - 4:30 pm

Cancellation and Refund

Enrollment is limited to assure maximum opportunity for participation and exchange of ideas. Substitutes will be accepted until the program starts. Cancellations will be accepted up to 14 calendar days prior to program start without incurring a $95 late cancellation fee. Full fee is charged for failure to attend when enrollment has not been canceled as specified. Contact Lynn Runyon at Courtenay Thompson & Associates, 214-361-8346 or lynn@ctassoc.com


All participants are eligible to receive up to 16 Continuing Education Credits (CPE’s) to fulfill professional accreditation requirements. Field of Study: Auditing. Course Level: Basic. Group-live, lecture-style seminar; no prerequisites or advanced preparation required. For information regarding CPE, complaint, or program cancellation, please contact our office at 214-361-8346.

Courtenay Thompson & Associates is registered with the National Association of State Boards of Accountancy (NASBA), as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org



Marriott at Legacy Town Center                                                  The Shops at Legacy

Dallas/Plano Marriott at Legacy Town Center
We have blocked a limited number of rooms at the Dallas/Plano Marriott at Legacy Town Center that will be available at the group rate of $199 plus tax per night.

Surrounded by scenic parks and water features, the Dallas/Plano Marriott at Legacy Town Center is a luxurious Plano hotel conveniently located within walking distance to upscale shopping, fine dining and entertainment.  www.shopsatlegacy.com

The Dallas/Plano Marriott at Legacy TownCenter is a luxurious Plano hotel conveniently located within walking distance to upscale shopping, fine dining and entertainment.  www.shopsatlegacy.com

Click here for a Marriott Detail Sheet listing Services, Fitness & Recreation (nearby golf courses), Local Attractions & Dining

- Our group rate is only guaranteed until August 21, 2017.
- Our group rate is available for a limited number of rooms for the nights of 9/10, 9/11 and 9/12.
- Most of our attendees stay at the hotel for two nights and a few opt to stay over a third night.
- If you have any problems making reservations for the nights you would like to stay at the hotel, please let us know and we will check with the hotel to see if they can accommodate your stay.

Book your group rate for Construction Audit & Cost Control Institute 

Call 1-800-228-9290 and use group code:  

Construction Audit & Cost Control Institute



The seminar classes will be held at the Dallas/Plano Marriott at Legacy Town Center

7121 Bishop Rd, Plano  TX  75024

Click Here for Directions


Rich Townsend is a principal of the consulting firm R. L. Townsend & Associates, LLC, which provides construction audit and construction cost control consulting services to Owners.

Since 1985, Mr. Townsend has been the instructor for the seminar entitled "Controlling Construction Costs" and "Effective Auditing of Construction Activity" sponsored by Courtenay Thompson & Associates.   He has also instructed in-house seminars related to construction contract audit and construction cost control for a wide variety of organizations and industries throughout the United States and Canada.

Prior to starting his consulting firm, Rich spent 13 years with the auditing department of a major retail corporation. During his internal auditing career (1971-1984), he served in several staff and audit management positions with a specialization in audits of construction contract activity.

Mr. Townsend is a Certified Internal Auditor (CIA), a Certified Public Accountant (CPA), and Certified Construction Auditor (CCA).  He currently serves on the advisory board for The National Association of Construction Auditors.  

He is a graduate of Waynesburg College (Waynesburg, Pennsylvania) where he obtained a Bachelor of Science Degree with a major in accounting.

Seminar Developers

R. L. Townsend & Associates, LLC and Courtenay Thompson & Associates  have jointly developed our professional development training seminars related to construction cost control and audit.

  Reviews from Seminar Participants


“Fantastic detail and techniques communicated. Excellent presentation.”


“Very informative in cost recovery techniques, and construction contract audit program examples.”


“Instructor was a great speaker…did an excellent job relating topics to real life examples.”


“I was impressed by the quantity and variety of the instructor’s experience. 
I was impressed by his accessibility and his speaking skills.”


“Engaging instructor.  Tons of valuable info.”


“Covered a wide range of construction audit examples, professional judgement ranges, and cost effective ideas. 
So incredibly helpful to someone new to this field.”

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Reminder:  Save the date for the
National Association of Construction Auditors
Annual Conference
to be held September 18-20, 2017
at Bally's in Las Vegas. 
Click Below for information on their website.


Construction Audit & Cost Control Institute, Inc.
3941 Legacy Drive - Suite 204 #218A  Plano, Texas 75023

Have Questions or Need Assistance?
Call Marie Jones at (254) 736-0309 or
Rich Townsend at 972-679-6762 or via e-mail at



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