Construction Audit Services
Annual Report
Port of Seattle
Main Terminal Low Voltage Upgrade Project (SD #1)
Concourse C-1 Building Expansion Project (SD #2)
Post IAR Airline Realignment Project (SD #3)
Construction Audit Report Submitted By:
R. L. Townsend & Associates, LLC
December 5, 2024
The contents of this report are based on our understanding of documents and other information provided to
us as of the date of this report. If anyone has any questions regarding the contents of this report, please contact
our office for clarification.
A revised report will be issued with a revised date if any material representation needs to be corrected.
Port of Seattle – Construction Audit Services Annual 2024 Satus Report
Report Date: December 5, 2024
R. L. Townsend & Associates, LLC
Page 1 of 4
Executive Summary
As a part of an overall program of controlling construction costs, Port of Seattle (POS) engaged R. L. Townsend
& Associates to perform a review of the contract and billing records associated with the Main Terminal Low
Voltage (MTLV) Upgrade, Concourse C-1 Expansion, and Post IAR Airline Realignment projects.
The objective of the audit is to ensure the project is billed in accordance with the contract terms.
R. L. Townsend is reviewing the following projects/ scopes of work:
• SD #1: Main Terminal Low Voltage (MTLV)
o Pre-construction – VECA (EC/CM)
o Construction – VECA (EC/CM)
• SD #2: Concourse C-1 Building Expansion
o Pre-construction – VECA (EC/CM)
o Construction – VECA (EC/CM)
o Pre-construction – Apollo (MC/CM)
o Construction – Apollo (MC/CM)
o Pre-construction – Crown Corr (EW/CM)
o Construction – Crown Corr (EW/CM)
• SD #3: Post IAR Airline Realignment Project
o Pre-construction – TBD (EC/CM)
o Construction – TBD (EC/CM)
o Pre-construction – TBD (MC/CM)
o Construction –TBD (MC/CM)
o Pre-construction – TBD (SC/CM)
o Construction – TBD (SC/CM)
The status and audit activities for each project are summarized on the pages that follow.
Port of Seattle – Construction Audit Services Annual 2024 Satus Report
Report Date: December 5, 2024
R. L. Townsend & Associates, LLC
Page 2 of 4
Main Terminal Low Voltage Upgrade
Project Status:
Audit Activities:
• Pre-Construction
o All EC/CM pre-construction billings to date (Pay Apps 1-27) were reviewed in accordance with
the contract. Supporting documentation was reviewed for all pay applications.
o The pre-construction items were resolved via discussions with the Port of Seattle and VECA. A
formal Exhibit of allowed personnel is still pending. This is the last item needed to close out
pre-construction.
• Construction
o All EC/CM billings to date (Pay Apps 1-22) were reviewed in accordance with the contract.
Supporting documentation was reviewed for all pay applications.
o All audit comments/ questions are sent via e-mail and responses to audit questions/comments
are provided via e-mail. To date, all audit questions/comments have been resolved.
o A reconciliation of all VECA costs through December 2023 was performed, and the review was
sent to VECA. The primary issues included the following:
▪ There is a variance between total job cost and pay app. This could be a possible timing
delay.
▪ Potential General Conditions personnel were included in Cost of Work. These specific
positions were not included on the cost matrix, as a result, not specifically identified
as General Conditions or Cost of Work personnel. This will need to be discussed with
VECA and POS.
▪ Invoices with different project numbers were identified. VECA is currently reviewing.
▪ Payroll verification for select individuals is currently pending payroll documentation.
GC/CM
EC/CM Subcontractor
Phase
Pre-construction Construction
Contract Signature 6/25/2020 11/3/2022
Original Contract Value
$ 412,000 $ 42,983,257
Executed CO
Current Contract Value
$ 1,345,528 $ 43,121,548
Billed as of October 2022 (Pay App #27)
$ 1,345,528
Billed as of September 2024 (Pay App #22)
$ 25,852,968
% Complete
100% 60%
Mortenson
VECA Electric & Technologies, LLC
Project: Main Terminal Low Voltage Upgrade
Port of Seattle – Construction Audit Services Annual 2024 Satus Report
Report Date: December 5, 2024
R. L. Townsend & Associates, LLC
Page 3 of 4
Concourse C-1 Building Expansion
Project Status:
Audit Activities:
• Pre-Construction
o All EC/CM, MC/CM and EW/CM pre-construction billings to date (Pay Apps 1-36) were
reviewed in accordance with the contract. Supporting documentation was reviewed for all pay
applications.
o The pre-construction items were resolved via discussions with the Port of Seattle. A formal
Exhibit of allowed personnel is still pending. This is the last item needed to close out pre-
construction.
• Construction
o All EC/CM, MC/CM and EW/CM billings to date (Pay Apps 1-23) were reviewed in accordance
with the contract. Supporting documentation was reviewed for all pay applications.
o Bluebeam Studio is used to review construction payment applications. All initial comments are
placed within Bluebeam Studio. All responses to audit questions/comments are provided via
email.
o Notable items within the pay app reviews included the following:
▪ VECA: VECA has been billing overscale rates that were not previously approved by POS.
POS confirmed the overscale base rates would be paid if VECA could justify the overscale
rates via certified payroll. The audit team is going through the process of verifying the
overscale rates.
▪ VECA: Audit team identified items shipped to personal residential addresses and other
non-project specific locations. These items have been removed from the pay application.
▪ VECA: Audit team identified items that were shipped to VECA’s home office that were
not project related and were not accepted by the POS Project Team. These items have
been removed from the pay application. We have asked POS for specific approved
shipping locations for materials. Any materials not shipped to these locations will be
questioned on future pay applications.
▪ VECA: 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: Audit team has identified labor rates billed which either were declined by POS or
not approved. We are awaiting credit adjustments for these items.
GC/CM
EC/CM Subcontractor
Phase
Pre-construction Construction Pre-construction Construction Pre-construction Construction
Contract Signature 9/30/2021 8/16/2022 8/12/2022 8/12/2022 1/9/2023 1/6/2023
Original Contract Value
$ 194,000 $ 150,694 $ 194,000 $ 113,445 $ 246,486 $ 5,239,538
Executed CO
$ 277,000 $ 55,476,711 $ 80,037 $ 38,737,042 $ 106,250 $ 4,812,600
Current Contract Value
$ 471,000 $ 55,627,405 $ 274,037 $ 38,850,487 $ 352,736 $ 10,052,138
Billed as of September 2023
$ 470,969 $ 274,037 $ 350,050
Billed as of September 2024
$ 8,126,096 $ 2,961,532 $ 2,286,175
% Complete
100% 15% 100% 8% 99% 23%
VECA Electric & Technologies, LLC
Apollo Mechanical Contractors
Crown Corr, Inc.
Turner
Project: Phase C-1 Building Expansion
Port of Seattle – Construction Audit Services Annual 2024 Satus Report
Report Date: December 5, 2024
R. L. Townsend & Associates, LLC
Page 4 of 4
Post IAR Airline Realignment
Project Status:
Audit received the PO in October 2023 and a kickoff meeting was held in May 2024. A document request list
was provided at the time of the kickoff meeting. The audit team is still pending documentation to begin work.
The delay could be partially due to a recent security breach earlier this year and turnover on the project team.
Townsend will continue to follow up with the project team and may request assistance if needed in the near
future.