Construction Project Risk Management for Higher Education - Baker Tilly Accountants and Advisors


Higher Education Audit and Assurance Best Practices / Benchmarking Studies Board and Audit Committee Constituent Relationship Management (CRM) Construction Project Risk Management Enterprise Risk Management Financial Modeling and Decision Support Financial Ratios / Benchmarking Forensic Accounting and Fraud Investigations Information Technology and Data Privacy Internal Audit Regulatory Compliance Sponsored Research Compliance Strategy and Finance Tax

Construction project risk management

Baker Tilly has performed construction management reviews for many universities and research institutions. We are able to leverage our recognized leadership in construction accounting, auditing, and advisory services for the construction and real estate industries and apply it to the unique aspects of higher education and research institutions.

We work collaboratively with construction teams from contract negotiation through the final pay application, mitigating project financial risk by performing internal audits, providing independent financial oversight, and monitoring financial controls over construction projects. We have negotiated claims settlements, designed contracting procedures, and uncovered unscrupulous contractor billing practices for real estate owners and operators. We have worked with many clients to uncover billing or pay application calculation errors, creating a substantial return on investment for our services.

Client experience: Preventing construction overpayments
Institutional challenge A large organization was undertaking major construction projects, including extensive renovations, the addition of a new building, and the expansion of its research institute. The organization wanted to ensure that it had a clear picture of risks associated with undertaking large-scale construction projects and sought an independent audit firm to review the internal controls applied to these projects. Capabilities provided Our goal was to help the organization avoid unexpected delays, expenses, operational problems, and accounting concerns. We reviewed key construction documents and interviewed project managers, financial personnel, and management team members to understand key risk areas. We then reviewed the design of internal controls and information flows in the high risk areas of contractor and subcontractor procurement and oversight, financial reporting, accounting and project management information flow, close-out processes, change order processes, and information systems. We also assessed the adequacy of documented policies and procedures, the effectiveness of the purchasing process to meet fiduciary requirements, and controls surrounding the construction IT system. Results Management proactively addressed internal control concerns that could have resulted in erroneous payments to contractors and/or management letter comments from the external auditors. Additionally, the institution enhanced its internal monitoring procedures and improved communication and information flow between construction and accounting personnel.
Additional construction management capabilities
Bonding assistance Cost segregation studies Construction and cost control consulting Portfolio management Property tax assessment studies Research tax credits Transaction services