Contract Compliance
Purchase Contracts: In today's fast paced and tightly regulated business environment, it is imperative to have a process in place that allows you to know whether your suppliers are in compliance with the contracts you have negotiated. Purchase contract compliance audits offer the opportunity to gain insight into control weaknesses as well as recover lost profits.
Contracts are often tracked manually and many suppliers rely on their customers to let them know when they are not in compliance. Most companies have some form of contract management tool, but most of these solutions are basic in nature and lack the ability to effectively notify you when there are compliance issues. Common contract compliance findings for buy and sell agreements include: pricing, footing, early pay discounts, maverick spending, volume discounts, returns, multiple agreements for the same product or service due to being decentralized, charges for costs that are not incurred, duplicate payments, payments for products or services that are no longer used, improper overhead allocations, improper mark-up of costs, etc.
ProfitDirect's purchase contract compliance audit services give our Clients the assurance that their suppliers are adhering to the terms and conditions both parties negotiated. ProfitDirect will assess compliance, present you with fully documented claims and promptly notify you of overpayments to suppliers. We will provide you with reporting that includes audit findings and practical recommendations for the purchase contracts audited as well as other agreements that you may have with similar suppliers.
Construction Contracts:- Have you ever wondered whether you were being billed correctly by the General Contractor for your construction costs?
- Did your project manager, architect, engineer, or construction management firm oversee the project for you and review all the construction project costs?
- Did your in-house audit group an/or your in-house accounting group review all invoices related to the construction project costs?
- How did you answer? Get peace of mind by letting ProfitDirect afford you the opportunity to recover lost dollars that are inevitably part of the construction process, as well as give you the time to get to your other projects.
It is critical and highly advisable for a final construction audit to take place to ensure that the construction costs billed by the contractor and payments made by the organization are appropriate. Unfortunately for too many organizations, one of the most important steps in the construction process is overlooked, the final Construction Audit.
ProfitDirect's Audit services help clients nationwide to identify actual and potential overpayments, overcharges, failures to recoup reimbursable expenses, etc., that may occur as a result of oversights due to the complex inter-relationships of contracts and the massive amounts of paperwork involved in the various transactions.
Furthermore, due to the language in many construction contracts, it is imperative that the organization quantifies its claims against the contractor for excessive billed costs prior to final payment, unless a reservation of rights accompanies the final payment.(Please carefully review your construction contract for this language).
Whether your contract is Lump Sum, Cost Plus, Cost Plus with a Guaranteed Maximum, with or without Shared Savings, Bid or Negotiated, it should be audited.
As with our other services, ProfitDirect's Contract Compliance Audit Program operates on a pay-for-performance basis. We are only paid a percentage of actual documented recoveries.