Policies & Procedures for New Construction, Renovation and Capital Maintenance Projects

Cost Control

1. Review with CM internal control procedures for monitoring project costs including change orders and variances to budget. Review should include interview of applicable CM personnel, walk-throughs of applicable transactions and review of generated reports.
    
2. Review any unit price contracts for proper approvals, supporting documentation for amounts billed and that overhead and profits do not exceed allowable rates.
    
3. Establish the procedures for change orders and review change orders for supporting documentation, including billings, documentation of work completion and approvals. Document procedures for reviewing and processing trade contractor payments.
    
4. Review a sample of trade contractor payments including supporting documentation, approvals and adherence to processing procedures.
    
5. Determine that CM has performed any work other than the General Conditions and determine that proper approval was obtained.
    
6. If applicable, review monthly statement for appropriate percentage for overhead and profit.
    
7. Determine the reasonableness of costs and determine that they do not exceed lowest bid for work from trade contractors.