SUBCONTRACTS AUDIT CHECKLIST

PROJECT PLANNING AND START-UP

1. Have prime contract requirements (flowdowns) been incorporated into the project's

special conditions for subcontracts?

2. Does the project file contain Company Legal Personnel’s written approval of the

Project Special Conditions?

3. Has a Subcontracting Plan and Workhour budget been established for subcontracts?

4. Is the budget being tracked and reported as expended versus percent complete?

5. Does purchasing have control budgets for subcontracts?

6. Are Claims Avoidance and Claims Recovery procedures in place?

7. Are computer hardware and subcontract systems in place?

8. Does the subcontracting plan include field need dates?

a. Are they realist?

b. Will the subcontracts have penalties for failure to meet field need dates?

9. Has a project bidders list supporting the subcontracting plan been developed?

10. Does the bidders list comply with any SDBA, MBE, and WBE requirements?

11. Do the project purchasing procedures include subcontracting procedures?

12. Does the subcontractor status and tracking system track the following:

a. Status of drawings and specifications applicable to the subcontract

packages?

b. Related instrument and equipment tag numbers?

c. Subcontract requisitions?

d. Inquiry numbers relating to subcontract numbers?

e. Technical Packages to be issued by:

i. Engineering

ii. Construction Management

f. Inquiries to be issued?

g. Inquiries out for bid?

h. Bids due from subcontractors?

i. Bids received from subcontractors?

j. Bids in evaluation?

i. Scheduled technical evaluation completion?

SUBCONTRACTS AUDIT CHECKLIST ii. Scheduled commercial evaluation completion?

k. Completion of commercial evaluation?

l. Completion of technical evaluation?

m. Issue recommendation to management/client for approval?

n. Return of management/client approval?

o. Receipt of written award approval?

p. Subcontract amount versus budgeted amounts?

i. Pending Change Orders?

ii. Approved Change Orders?

q. Subcontract issued to subcontractor for execution?

r. Subcontract received, fully executed and distributed?

s. Data submission requirements?

t. QA/QC shop and field inspection requirements?

u. Submission of approval data by subcontractor?

v. Complete approval data received?

w. Return of approved data?

x. Complete certified data received?

y. Insurance Certificate received and Date of Expiration?

z. Scheduled mobilization date?

aa. Scheduled completion date?

bb. Percent complete versus scheduled complete?

cc. Applicable Milestone completion dates

dd. Actual completion date?

13. Has subcontracts management approved the procedures?

PROJECT EXECUTION

1. Are preaward or award meetings held for complex and major subcontracts?

2. Are subcontract files secure?

3. Do they correspond to the registers?

4. Are they filed sequentially?

5. How are the subcontracts files checked out so they are easily traceable to the

persons who have the files?

SUBCONTRACTS AUDIT CHECKLIST 6. Are backcharges to subcontractors properly documented and coordinated through

purchasing?

7. Are all subcontractors being properly monitored to ensure progress and schedule

compliance?

8. Is the subcontractor status and tracking system being properly updated, issued and

distributed?

9. How are claims and change request conveyed to the subcontractor?

10. Are Claims Avoidance and Claims Recovery procedures being followed?

11. Are claims by subcontractors recorded by subcontract personnel and approved or

rejected by project and company management?

12. Have any project variances been initiated because of:

a. Changes in the scope of work by the Owner?

b. Subcontractor claims?

c. Engineering design changes?

d. Construction changes?

e. Weather and other delays?

f. Procedural changes?

13. Do completed subcontract files include subcontractor evaluations?

14. Do change orders have budget estimates?

15. Are subcontracts executed before site subcontractors mobilize?

16. Has the Company Legal Personnel reviewed and approved subcontracts that

deviate from the general and special conditions?

17. Does project management approve all subcontracts:

a. Before award?

b. Have all awarded subcontracts been properly approved?

c. Is the approval process timely?

18. Are current insurance certificates for site subcontractors on file, and do they

indicate the required coverages?

19. If not, did subcontract management, company legal personnel, and company

management approve the reduced coverage?

20. Are there client approval and indemnifications for reduced coverages?

21. Are subcontracts administered by properly trained subcontract personnel?

SUBCONTRACTS AUDIT CHECKLIST 22. Does a random sample of the subcontract files indicate compliance with:

a. Project and Company Procurement procedures?

b. Approved Project Subcontracting plan?

PROJECT CLOSEOUT

1. Are there any claims from subcontractors outstanding?

2. Are there any backcharges to subcontractors outstanding?

3. Are there any unresolved subcontractor warranty issues?

4. Are there any outstanding invoices for subcontracts?

5. Are there any disputed invoices?

6. Have all subcontracts been properly closed out?

7. Are all subcontractor data requirements completed?

8. Have all files been checked for proper documentation?

9. Have all files been properly labeled and stored?