The document discusses construction project audits and evaluations. It defines audits and evaluations, describing that audits inspect or verify processes while evaluations appraise performance against standards. The document outlines different types of project audits used in construction, including normal, quality, risk, and procurement audits. It discusses the importance of audits in ensuring quality of products/management, identifying risks, and improving performance. Project audits are an important quality assurance and improvement tool in construction management.

1. POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
MASTER OF SCIENCE IN CONSTRUCTION MANAGEMENT
ACADEMIC SCHOOL YEAR 2021-2022
CLASS 1-1B
GROUP 4 REPORT
CONSTRUCTION PROJECT AUDIT AND
EVALUATION
MEMBERS:
AR. LORD KRISTAN A. LOGMAO
AR. ROLAND R. MARMITA
ENGR. AR-JAY F. TAMBAOAN
ENGR. AIREEN M. UBAS

2. What is Audit & Evaluation?
What are the Importance of having Audit and Evaluation in our industry?

3. CONSTRUCTION PROJECT AUDIT AND EVALUATION 3
DEFINITION OF AUDIT AND
EVALUATION

4. CONSTRUCTION PROJECT AUDIT AND EVALUATION 4
WHAT IS PROJECT AUDIT AND EVALUATION?
• Audit is the inspection, examination or verification
of a person, organization, system, process,
enterprise, project or product. On the other hand,
an evaluation is used to appraise, evaluate,
determine the merit, worth and/or significance of an
idea or concept.
• Audit and evaluation are both concepts used for
assessing products and performance and are equally
important to an organization. However, they are
significantly different from one another.

5. CONSTRUCTION PROJECT AUDIT AND EVALUATION 5
AUDIT IN GENERAL
• An audit is the inspection, examination or verification of a person, organization, system, process,
enterprise, project or product. It is used to determine the authenticity and validity or to ensure that a
process is being followed.
Definition Purpose Goal
The inspection, examination or
verification of a person,
organization, system, process,
enterprise, project or product.
To evaluate or improve
appropriateness, safety and/or
efficiency; to ascertain the
validity and reliability of
information; to provide an
assessment of a system's
internal control. Usually used in
accounting.
To express an opinion of the
person, organization or system
based on work done on a test
basis. An audit in accounting
seeks to prove that the
statements are free from
material error.

6. CONSTRUCTION PROJECT AUDIT AND EVALUATION 6
EVALUATION IN GENERAL
• An evaluation on the other hand is used to appraise, evaluate or determine the merit, worth
and significance of the subject against a set of standards. Evaluation is done in order for
identifying and understanding the results of a process and their impacts, as well as what can
be the best alternatives to help in decision-making and lead to improvement in the process.
Definition Purpose Goal
To appraise, evaluate or
determine merit, worth and
significance, against a set of
standards.
To assess any aim, concept or
proposal; to help in decision-
making; to ascertain
achievement or value; to
gaining insight into prior or
existing initiatives, to enable
reflection and assist in the
identification of future change.
To determine the quality of a
program.

7. CONSTRUCTION PROJECT AUDIT AND EVALUATION 7
PROJECT AUDIT AND
EVALUATION IN
CONSTRUCTION

8. CONSTRUCTION PROJECT AUDIT AND EVALUATION 8
PROJECT AUDIT IN PROJECT MANAGEMENT
A project management audit is an examination designed to determine
the true status of work performed on a project and its conformance with
the project statement of work, including schedule and budget
constraints. It is an independent, structured assessment of the state of
affairs conducted by a competent examiner.

9. CONSTRUCTION PROJECT AUDIT AND EVALUATION 9
CONSTRUCTION PROJECT AUDIT
• a systematic field-test audit of all incoming invoices, including both direct and indirect costs,
no matter where these costs were incurred.
• designed to give owners confidence that invoices received for each project are proper and
correct, given the commercial terms of the contract and other relevant constraints.
• a review of various aspects of a project to ensure they are performing appropriately and in
keeping with the contract.
• it is the process of detailed inspection of the management of a project, its methodology, its
techniques, its procedures, its documents, its properties, its budgets, its expenses and its
level of completion.
• Audits are typically performed by a designated audit department, the "Project Management
Office", an empowered Steering Committee or an external auditor.

10. CONSTRUCTION PROJECT AUDIT AND EVALUATION 10
VARIOUS TYPES OF PROJECT AUDIT IN PMBOK
• NORMAL AUDIT OR INSPECTION
• QUALITY AUDIT
• RISK AUDIT
• PROCUREMENT AUDIT

11. CONSTRUCTION PROJECT AUDIT AND EVALUATION 11
NORMAL AUDIT OR INSPECTION
A normal audit or simply ‘audit’ is
part of Monitoring and Controlling
process group. It is also termed as
Inspection as it is basically a QC
process. Inspection is done after
the product is built

12. CONSTRUCTION PROJECT AUDIT AND EVALUATION 12
QUALITY AUDIT
Quality audits are part of
Execution process group. These
are reviews of your project by
your company. They figure out
whether or not you are following
the company’s process

13. CONSTRUCTION PROJECT AUDIT AND EVALUATION 13
RISK AUDIT
Risk audits are part of Monitoring and
Controlling process group. These help
with overall process improvement. The
risk responses (that were implemented)
are analyzed to determine if they were
effective in handling the risks and their
root causes. Similarly, you can also audit
and gauge the effectiveness of the risk
management processes in the project as
a whole too

14. CONSTRUCTION PROJECT AUDIT AND EVALUATION 14
PROCUREMENT AUDIT
Procurement Audit is part of Closing
process group. As part of procurements
closure, a structured overall review flushes
out issues, sets-up lessons learned, helps
ensure problems are resolved for future
projects and also identifies successes and
failures that warrant transfer to other
procurements

15. CONSTRUCTION PROJECT AUDIT AND EVALUATION 15
Audit policies and activation procedures
• Audit mission statement
• Specification of audit competencies
• Roles and responsibilities of the actors involved
• ‘Trigger’ audit criteria
• Audit start procedures
• Audit execution procedures
• Audit reporting procedures
• Audit redress procedures

16. CONSTRUCTION PROJECT AUDIT AND EVALUATION 16
• Audit mission statement - this document should clearly define the
purposes, objectives, authority and limits of the audit operation, as
well as the type of audits to be conducted.
• Specification of audit competencies - a detailed specification of the
auditor’s skills and experience, showing that the audit staff possess
adequate expertise to audit the project.
• Roles and responsibilities of the actors involved - a detailed
statement of all the roles and responsibilities covered by the audit,
both for the person conducting the audit and for the project team –
including the project manager, team members, project sponsors,
clients and any stakeholder.

17. CONSTRUCTION PROJECT AUDIT AND EVALUATION 17
• ‘Trigger’ audit criteria - a complete list of all the criteria on the basis
of which projects will be selected for an audit. It would be too costly
and time-consuming and would defeat the purpose of the audit
process itself. Thus, specific criteria should be established to identify
projects to be audited on the basis of risk, complexity, internal value,
costs, etc.
• Audit start procedures - a description of the procedures for the
initiation of the audit, including the process by which individual project
managers are informed of an outstanding audit and the related
preparation requirements.

18. CONSTRUCTION PROJECT AUDIT AND EVALUATION 18
• Audit execution procedures - a list of audit procedures that cover
the methods to be used during the audit. This varies according to the
type and timing of each audit, but may include personal interviews
with project staff, document reviews, questionnaires and more.
• Audit reporting procedures - a specification of the audit reporting
procedures, which covers how and the way in which the audit results
will be reported and reviewed. In order to minimize the threatening
nature of the project audit, all parties should be fully aware of how the
results will be disclosed and used within the organization.
• Audit redress procedures - a specification of all procedures to be
followed to appeal and/or dispute the reported audit results.

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THE IMPORTANCE OF
CONSTRUCTION PROJECT AUDIT
AND EVALUATION

20. CONSTRUCTION PROJECT AUDIT AND EVALUATION 20
FIVE MAIN OBJECTIVES OF
CONSTRUCTION PROJECT AUDIT
• Ensure the quality of products and services
• Ensure the quality of project management
• Identify the business risk
• Improve project performance
• Learn

21. CONSTRUCTION PROJECT AUDIT AND EVALUATION 21
ENSURE THE QUALITY OF PRODUCTS
AND SERVICES
• A project audit acts as a quality assurance tool
• When reviewing the design phase, a project audit evaluates the thoroughness of the
design concepts, including the analysis of alternative designs
• it is assessed whether the solution is ready for the pilot test and finally, during the
implementation review, the project audit assesses and confirms the implementation
at each site where the product is adopted.
• The identification of the errors during the process contributes to the resolution of
the problems and to understand if the project should continue through a go/no-go
decision at each stage.

22. CONSTRUCTION PROJECT AUDIT AND EVALUATION 22
ENSURE THE QUALITY OF PROJECT
MANAGEMENT
• A project audit ascertains that the project management
satisfies the standards by assessing whether it complies
with the organization's policies, processes and procedures.
It evaluates the methodology used to help identify gaps in
order to introduce the required improvements.

23. CONSTRUCTION PROJECT AUDIT AND EVALUATION 23
IDENTIFY THE BUSINESS RISK
• assists in locating business aspects where risks might exist and have
an impact on the budget, timeline, environment, and quality
• By being transparent and evaluating costs, time, and resources, the
project audit evaluates the project's viability in terms of affordability
and performance
• When it comes to controlling the budget, it uses a review and
equalization strategy, looking at data including predicted and actual
expenses as well as costs of achieving goals.

24. CONSTRUCTION PROJECT AUDIT AND EVALUATION 24
IMPROVE PROJECT PERFORMANCE
• The monitoring of the various phases of the project life cycle can
contribute to the improvement of the project team’s performance.
• The audit also helps to improve the budget and resource allocation.
• Identifying priorities, corrective measures and preventive actions can
lead to a positive project outcome.
• The troubleshooting process allows the project team to provide
solutions and helps prevent similar problems from recurring in the
future.

25. CONSTRUCTION PROJECT AUDIT AND EVALUATION 25
LEARN
• A project audit can deliver learning opportunities through
assessments of project management expertise.
• Providing reviews and feedback allows individuals and project teams
to ponder their own performance.
• Individuals and project teams are given the opportunity to reflect on
their own performance by way of reviews and feedback.

26. CONSTRUCTION PROJECT AUDIT AND EVALUATION 26
CONSTRUCTION AUDIT’S STRENGTH
Construction audits, while they cannot completely eliminate problems,
can lessen their impact when they occur. Three criteria can help ensure
that the construction audit is a sound, cost-saving exercise: perspective,
effectiveness, and experience.
• Perspective
• Effectiveness
• Experience

27. CONSTRUCTION PROJECT AUDIT AND EVALUATION 27
CHALLENGES IN PROJECT
AUDITING

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• Project Auditing is not always welcome in every project.
• Lack of training or communication within the professionals and
team involved in the project.
• Unwillingness of certain parties to correct project audits.

29. CONSTRUCTION PROJECT AUDIT AND EVALUATION 29
AN EFFECTIVE CONSTRUCTION AUDIT can provide an important
measure of control over a complex process that can easily slide out of
control. In today's business environment, the decision to hire a
professional auditing team can be a sound management practice that
allows the owner to concentrate on managing his team of
professionals while ensuring that billing errors will be detected, and
that the project will avoid running into major financial problems. It can
also be a significant element in ensuring that a project is completed on
time and within budget

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PERSONAL EXPERIENCES

31. CONSTRUCTION PROJECT AUDIT AND EVALUATION 31
NATIONAL HOUSING AUTHORITY
• Normal auditing and evaluation by the District Office / Implementing
Units during the construction
• Implementation of the Constructor’s Performance Evaluation System
(CPES) wherein, Constructor’s Performance Evaluators (CPE)
evaluation the performance of the developers during and upon
completion of each project.
• Creation of a Project Acceptance Committee before the final release
of Final Progress Payment and Retention Money to the Developers
-AR. LORD KRISTAN A. LOGMAO

32. Construction Project Audit & Evaluations
Practicing my Profession as a Registered Architect in the Construction
Project:
As a NEW Architect, practicing my profession I shall introduced to you my references used
in different Architectural Services. These are the legal documents as my guide how I
render services to my client.
• Standard Professional Practice (SPP) Documents (201-209)
Annex “A” Promulgated as Part of the IRR of R.A. No. 9266, known as
“The Architecture Act of 2004”
• Architects Guidelines
CONSTRUCTION PROJECT AUDIT AND EVALUATION

33. SPP204-A
FULL TIME SUPERVISION SERVICES
The Architect-in-charge of construction (Aicc) is directly and professionally
responsible and liable for the construction supervision of the project.
SCOPE OF SERVICES
• Quality Control
• Evaluation of Construction Work
• Preparation of Daily Inspection Reports
• Filing of documents
https://www.architectureboard.ph/wp-content/uploads/2019/09/1.4-2010-SPP-for-PH-
Architects.pdf
CONSTRUCTION PROJECT AUDIT AND EVALUATION

34. SPP204-A
FULL TIME SUPERVISION SERVICES
Manner of Providing Services
There are two ways by which the Architect may enter into contract with the Owner:
• Working in a dual capacity as Architect-of-record and as Consulting Architect
for fulltime supervision services or as the Construction Supervision Group (CSG).
As the Architect-of record (AoR) of the project, the Aor is in a better position to
interpret his drawings and documents and to assure conformity by the Contractor.
He can assign his staff to undertake the fulltime supervisory work to perform the
works as enumerated in the Architect’s Guidelines.
• Working as Consulting Architect for fulltime supervision services only or as the
CSG.
https://www.architectureboard.ph/wp-content/uploads/2019/09/1.4-2010-SPP-for-PH-Architects.pdf
https://united-architects.org/publications/architects-guidelines/
CONSTRUCTION PROJECT AUDIT AND EVALUATION

35. SPP204-B
CONSTRUCTION MANAGEMENT SERVICES
Due to the increasing complexity of construction projects, there is an upward
demand for more effective cost control and faster project implementation
consistent with high quality of work. Construction Management Services were thus
instituted to fill this need in the construction industry.
The Architect can serve as the Construction Manager (CM). His training in the
coordination of various specialties allows him to supervise and assure proper
monitoring of all construction activities with regards to quality, workmanship and cost
https://www.architectureboard.ph/wp-content/uploads/2019/09/1.4-2010-SPP-for-PH-Architects.pdf
https://united-architects.org/publications/architects-guidelines/
CONSTRUCTION PROJECT AUDIT AND EVALUATION

36. SPP204-B
CONSTRUCTION MANAGEMENT SERVICES
FUNCTIONS AND DESCRIPTION OF TASKS
The responsibilities of the Construction Manager (CM) include the functions of the
Construction Supervision Group (CSG). (reference Doc. 204-A and Architect’s
Guidelines)
• Coordination and Supervision
• Cost and Time Control
• Quality Control of Work and
• Keeping of Records
https://www.architectureboard.ph/wp-content/uploads/2019/09/1.4-2010-SPP-for-PH-Architects.pdf
https://united-architects.org/publications/architects-guidelines/
CONSTRUCTION PROJECT AUDIT AND EVALUATION

37. SPP207 DESIGN-BUILD SERVICES
• In any building project, there is need to balance the elements
of time, quality and cost, which, in many cases, can best be
achieved by the Architect performing Design-Build Services.
• The Architect renders professional services in the
implementation of his design. In Design-Build Services, he
assumes the professional responsibility and civil liability for
both the design and the construction of the project.
https://www.architectureboard.ph/wp-content/uploads/2019/09/1.4-2010-SPP-for-PH-Architects.pdf
https://united-architects.org/publications/architects-guidelines/
CONSTRUCTION PROJECT AUDIT AND EVALUATION

38. First Project: Design and Build by Administration
(On-going Design Development Process)
EXISTING FACADE PROPOSED FACADE

39. Learning
“I have learned that Project Auditing and Evaluation are essential in
a construction management because it provides a comprehensive
feedback on project status and determine the quality.
I am looking forward that this knowledge will benefits my present
and future projects and for the total satisfaction of my Clients..”
Ar. Roland R. Marmita,UAP
PUP MSCM -1B
CONSTRUCTION PROJECT AUDIT AND EVALUATION

40. CONSTRUCTION PROJECT AUDIT AND EVALUATION 40
LGU-GUMACA, QUEZON
Construction Project Audit
• The Commission on Audit (COA) will audit the LGU’s compliance with
related regulations
• The procedure is post auditing
• COA will issue Audit observation Memorandum (AOM) if they found
some deficiencies with the transactions
• COA will give recommendations and will give certain number of days
to comment/explain such deficiencies.
-ENGR. AIREEN MAÑAGO-UBAS

41. CONSTRUCTION PROJECT AUDIT AND EVALUATION 41
Sample of AOM

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LGU-GUMACA, QUEZON
Construction Project Evaluation
• We adopt and mainstream the use of Quality Assurance Assessment
Report (QAAR) Toll in evaluation and assessment of quality of
infrastructure projects
• Department of the Interior and Local Government (DILG) introduced
last April 2021 for Local Government Support Fund (LGSF) Projects
the used of QAAR Toll
• QAAR Toll aides to ensure compliance to quality standards so as not
to compromise the functionality of infrastructure projects once
completed.
-ENGR. AIREEN MAÑAGO-UBAS

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48. Construction Project Audit & Evaluations
CONSTRUCTION PROJECT AUDIT AND EVALUATION
Monolith Construction and Development Corporation
- Audit includes Employee assessment regarding the awareness of
construction methodologies this includes document tracking
- QA/QC Audit includes Project Checklist and forms to be complied by Site
team to evaluate whether the Project is aligned with the standard
quality to ensure Project Turnover
- Risk Audit includes Safety Program this is done with either the Safety
head of the company or the Safety consultant of the clients this happens
mostly once a month.

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THANK YOU!!!