Construction Audit
Services
Annual Report
Scope
Review EC/CM monthly pre-construction and construction billings
Progress
Pre-construction pay apps (1-27)
o
Pending formal Exhibit with approved names of allowed personnel/ positions
Construction pay apps (1-22)
o
Audit issues are resolved prior to pay application approval
Potential Issues Identified During Reconciliation (December 2023)
Several positions included in Cost of Work were not specifically identified on the
cost matrix. These positions appear to be General Conditions personnel.
Invoices associated with different project numbers were identified.
There is a variance between the total job cost and amount billed to date. This
could be a possible timing delay.
These items are under review by VECA
CONSTRUCTION AUDIT SERVICES ANNUAL REPORT
Main Terminal Low Voltage (SD #1)
December
5, 2024
2
CONSTRUCTION AUDIT PRACTICES
Phase C-1 Building Expansion (SD #2)
Scope
Review MC/CM, EC/CM and EW/CM pre-construction and construction billings
Progress
Pre-construction pay apps (1-36)
o
Pending formal Exhibit with approved names of allowed personnel/ positions
Construction pay apps (1-23)
o
Issues are resolved prior to pay app approval. If not, items are carried forward to be addressed on
future pay apps.
Identified Issues
VECA was billing overscale rates for individuals (not previously approved by the Port). This has
been approved by the Port as long as the overscale rates can be verified. Audit team is currently
verifying the overscale rates through certified payroll.
Items shipped to personal residential addresses, VECA’s home office, and other non-project
specific locations were identified. These items were removed from the billings. Additional controls
were set in place for future billings.
An audit is currently being conducted by the Port to confirm materials shipped to general
warehouses (owned by subcontractors) are designated for the project.
Apollo was billing labor rates that were declined by the Port or not approved. Credit adjustments
will be incorporated on future Pay App.
December
5, 2024
3
