Port of Seattle
Construction Audit Services
Annual Report
Presented by:

FACT Financial Investigations LLC

December 4, 2025
December 4, 2024

This Photo by Unknown Author is licensed under CC BY-SA

Primary Fire Station Continuing Operations Preservation
(MC-0320968 / WP#N04419))

Scope
 Review MC/CM monthly construction billings
Progress
 Construction pay apps (1-14)
o Issues are resolved prior to pay app approval in most circumstances. If not,
items are carried forward to be addressed on future pay apps.
Examples of Issues Identified
 Billing of OT hours that should be RT hours. Credit received.
 Billings included shop and field worker without a way to easily discern

who was in the shop vs. field. Hermanson provided a NER listing that
provides a listing of all field workers to assist.

 Ship to address is not the Fire Station address or the Hermanson's

address. Hoffman/Hermanson reviewed concerns and provided
confirmation that the orders were in fact for the Fire Station and was
delivered to a logistics laydown yard.
CONSTRUCTION AUDIT SERVICES ANNUAL REPORT

• Concourse Low Voltage Upgrades Project
(MC-0321001 / WP#U00504)
Scope
 Review EC/CM pre-construction and construction billings

Progress


Pre-construction pay apps (1-18)
o Pending reconciliation credit for labor billed for incorrect number of hours due to a calculation error
o Pending reconciliation of electrician labor for individuals not present in the TVB Workplan

 Construction pay apps (1-13)
o Issues are resolved as identified. FACT receives Applications for Payment after Port CM has approved.

Examples of Issues Identified
 EC Electric utilized a spreadsheet to calculate number of hours to bill for Management Staff. In

two payment applications, the spreadsheet calculated incorrectly the number of hours; therefore
the project was overbilled. Awaiting credit for this item from EC Electric.

 EC Electric submitted a TVB Workplan for the preconstruction work. Within this, individuals were

specifically named for positions and rates. EC Electric billed individuals not included on the
workplan at rates that were designated for higher positions (i.e.. Apprentice billed at same rate as
General Foreman)

 FACT is awaiting response from Mortenson/EC Electric to further evaluate the appropriateness of

the billings and request credit where applicable.

CONSTRUCTION AUDIT PRACTICES