An Initiative by IIT Delhi Alumni

Techno-commercial Audit Of Real Estate Construction Projects

Techno-commercial Audit Of Real Estate Construction Projects

Construction Audit is the process involved detail study and analysis of Project details, documents, development plans, various contract conditions, tax liability, cost structures,  expenses, procurement, change order, value engineering, qualities, safety, statutory requirement, project requirement along with other internal and external constraints are examined thoroughly to establish control system to avoid cost and time overrun and to strengthen the working relationship between owners, contractors, suppliers, consultants, and other project participants. The techno-commercial project audit helps to avoid litigation, manage risk, optimize opportunities, improve performance, focus on strengthening financial controls over the process,  ensure correctness, effectiveness,  efficiency and contract compliance of projects.

Key learning objectives

  • Define construction project audit objectives
  • Identify construction techno financial risk
  • Administration, operation and support functions
  • Review of periodic statutory compliances
  • Review of project control statements

Builders Land Ownership

  • Land Registration
  • Payment Receipt
  • Land transfer in revenue records ( Mutation)

Land in collaboration

  • Agreement with Landowner for the specific development
  • NOC
  • Payment Records
  • Development Schedule

Project Approval

  • Land-use change
  • Land development License as per Master plan and sector plan
  • Payment to Govt. / Local authority the approval fee: EDC, IDC, Infrastructure development and all other charges
  • Master Layout plans
  • Building Plans, elevations, sections, Infrastructure development plans
  • Height Clearance
  • Road Connection access
  • Sewer Connection
  • Water Connection
  • Grid Power Connection
  • DG approval
  • Lift approval
  • Boiler Approval
  • Gas bank Approval
  • Fuel Oil Tank Storage Approval
  • Environment Clearance
  • Pollution Control Clearance

Construction Planning, Execution & Management

Project Monitoring through regular physical inspection of completed project work, Review project schedules, Charting of delays, Review of project cost monitoring mechanism, Materials covering purchase and movements, Procurement of building services, Implementation of the (construction) project/outflow of funds, Claims management, project planning scheduling & monitoring, contract appraisal, change and supplement management with the study of milestone activities as below;

  • Architectural Drawings
  • Structural Drawings Design
  • Plumbing Fire Drawings
  • Electrical, HVAC, Fire detection drawings
  • IT, Telecom, CCTV, TV Network
  • Solar & Non-Conventional energy drawing
  • Landscape plans
  • Horticulture plans
  • Working drawings
  • Progress Reports
  • Design calculations
  • Tender Documents: BOQ, Specifications, Terms & Conditions
  • Construction Schedule
  • Material Procurement plans
  • Inventory Control
  • Topographical survey
  • Soil test
  • water test
  • Site leveling
  • Checking of structural drawings and calculations
  • Checking of working drawings with approved drawings
  • Area calculation and compare with an approved area
  • Layout check along with land boundaries and setbacks
  • Basement excavation levels
  • Soil stacking & disposal
  • Level checking
  • Raft casting with the provision of a sump, lift well, drains
  • Basement Footing, column slab costing with necessary openings, stairs
  • GF & Upper floor slab casting
  • Brickwork & blockwork
  • Waterproofing work
  • Internal & External electrical works
  • Internal & External Plumbing work
  • HVAC work
  • Landscape work
  • IT & Telecom work
  • CCTV & Security system
  • Fuel Oil storage
  • Gas bank
  • Building Automation
  • Flooring, cladding, Tile & Stonework
  • Road, walkways  and traffic circulation
  • Lighting plan
  • Water bodies, fountain
  • Finishing work
  • Signage plan
  • Installation of Plants & equipment
  • Testing & Commissioning activities
  • As build drawings
  • Operation Manual
  • Completion & Project Handover

“It is imperative to understand the significance of thorough Audit at the project initiation, periodic and final review on project completion and handing over with establishing concrete project implementation system to avoid or minimize the chances of cost & time overrun and to achieve the most appropriate sustainable development.”

Note: The above typical points are indicative whereas the actual scope of activities can be workout based on local norms, type of project, location, the scope of work, contract conditions and other related parameters.

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