Allowances

Why we were hired: Past private client / contractor and developer financial control issues.

Services provided: Construction Audit

This audit of a $160M 16-story high rise apartment complex identified 72 allowances totaling $18.7M. The contractor stated that they used $18.5M of the allowances, and the developer said that $17.2M of allowances were used. Based on an audit of allowance documentation, the true amount used was $15.745M. The owner received a credit back of $2.5M and used the remaining balance to add extras to the building.