Why is a Construction Site Audit Necessary for the Business Success?

April 15 , 2022

The construction site audit often gets considered an easy task when, in reality, the most challenging task that helps reduce enterprise risks for big projects. Customers and contractors need to build stronger relationships, reduce costs, and improve health and safety standards. Since it is one of the industries with the highest rate of incidents, injuries or delays, compliance is essential for the business? Accurate audits can help companies cut down costs and increase savings. These constructions include new schools, offices, wastewater treatments plants, buildings, hospitals, etc. Thus, using the proper techniques and strategies is crucial for the success of the project, leading to the correct allocation of resources.

Audits give companies the power to control internal processes to reduce risks and keep a thorough check and balance. Similar to nursery audits, construction audits have become a must. Usually, these companies are audited by third parties for the ultimate accuracy of the operations and accounts conducted by the company. Though people and companies often associate auditing with financial assessments, it includes everything from safety rules to infrastructure issues. The construction business is a risky job that needs ultimate attention; therefore, it becomes essential for auditors to conduct regular audits to maintain high standards and comply with the agreed contracts or rules.

What is a construction site audit?

Like any other audit, the construction audit focuses on assessing all aspects of the construction projects to ensure compliance and adhere to the agreed contract. It means the auditors research the company and the processes being used. This often includes auditing the machinery, infrastructure, employees, safety rules, resources, etc. Usually, a board of auditors is hired to perform various tasks and recorded for review later. Stakeholders and government officials request such audits. However, internal auditors are also done to see if the project is going according to the plan and make changes if some errors are detected to save the company from going into bigger losses.

3 Types of Construction Site Audits

We all know various types of audits make a project a success. But when talking about the construction site audit, three main types of audits ensure compliance.

1. Health and Safety Audit

Since the construction business is involved with heavy and dangerous machinery, it is often prone to injuries. The industry follows a difficult pattern of getting the work done. The staff performs laborious work like picking up bricks, scooping the sand, maintaining machines, transferring goods from one floor to another, etc. Such places are bound to create a hassle for the workers, thus making health and safety audits a must. These audits assess various aspects of the site, from walkways to safety gadgets to safety boards. It becomes essential for the people managing the construction project to place the safety boards or stickers at the right place as any error may lead to hazardous consequences for the workers. Moreover, the examination also focuses on checking that all workers are wearing safety uniforms and helmets and have the necessary gadgets to protect themselves from uncalled calamities.

2. Financial or Accounting Audit

The cost becomes the primary factor for conducting audits for the construction sites. Auditors need to check the budget and compare it with the used amount to verify the money spent on various resources. It makes it easy for the company to check if particular agreed materials or machinery has been purchased and installed in the right place instead of cheaper options. Further, it helps verify the quality of objects or overall work depending on the resources and methods used in the development process. The correct use of material and regular audits help prevent delays and take counteractions against potential risks.

3. Project Audit

Like the nursery audits, the project audit sees if the project follows the actual plan and techniques instead of incorporating minor changes. It even assesses the site manager to not deviate from the agreed terms and conditions.

Why should construction sites be audited?

1. Cost Recovery

The construction industry is one of the few industries that doesn’t have a fixed cost which means the actual price can vary dramatically from the forecasted construction cost. If companies do not have a strict management system on the site, the cost can get out of hand as resources will get wasted, machinery may break, the incident rate may increase, etc. Hence, making it essential for companies to conduct a construction site audit to forecast and take proactive action against risks. Following the plan or agreed contract is the best way to avoid problems; thus, managers should focus on managing the workforce to cut down costs and keep the project within the decided budget.

2. Resolve Conflicts

People working together always get into conflicts and disagreements pretty much easily affecting the performance of the projects indirectly. Thus, project managers are responsible to assign tasks to individuals or departments accordingly to follow the plan efficiently and correctly while adhering to the safety measures. The construct audit makes sure managers follow the rules and get the work done efficiently.

3. Safety

Ensuring safety is one of the fundamentals of a construction site. Like nursery audits, the auditors review the system to deal with dangerous equipment, materials and working conditions. It becomes vital for the security and safety of the employees. Usually, these sites have an unsafe environment. They may result in incidents or injuries and may lead to diseases, affecting the health of the workers working there. So, conducting construction audits is necessary for the safety of the workers.

4. Check Progress

The main parameter for judging the project’s success through its progress. A project should meet the timeline to avoid delays. Auditors work in the project’s best interest by reviewing the site progress and talking with the managers to get an insight into the project. It becomes easier for them to assess the time needed for the project to complete by seeing if it is behind or ahead of schedule. Most construction companies charge their clients according to the project completion time in the rapidly advancing world. The faster a project gets completed, the more expensive it will be.

Companies are developing an audit application (Android) to automate the entire process making it easier for auditors to review sites according to the checklist and generate reports in real-time. Further, it has shortened the auditing process as it now takes a few hours to reach a conclusion and take instant action against issues to avoid more significant losses.