Wether building a new office, improving real estate portfolios, or refurbishing and modernizing existing property, construction projects can present significant risks for an organization. Construction projects offer fertile ground for fraud and mismanagement. Auditors are best qualified and placed in the organization to assist in establishing construction controls and in appraising progress to mitigate project risks. Ongoing audits can provide senior executives with relevant and timely governance issues as they occur.

This handbook provides a framework to make sure you adress the risks for your projects. It includes the ABC's of a succesful construction project, coverage of construction basics, understanding the world of contractors, and when and how to audit the project.

Although this handbook is primarily geared toward ongoing, hands-on audit involvement during all project phases, its principles may be applied at any time. It will provide you with:

• Testing, reporting, and staffing strategies.
• Help in identifying different areas of risks and how to mitigate them.
• Knowledge of wich documents to ask for and when to ask for them.
• Meand to determine hidden costs and avoid paying for work not bargained for.

This guidance fits into Framework under the heading Development and Practice Aids.