top of page
  • Writer's pictureJerry Ipsen, CFE, MBA

The Need for Construction Project Controls

Updated: May 1, 2022

If you're interested in learning how to detect and keep from becoming a victim of construction fraud, I wholeheartedly encourage you to read “How to Detect Construction Fraud" by Robert Louis Becker. Becker felt the establishment of a Project Controls Group at the beginning of a project would provide huge cost savings over having the need to hire attorneys and auditors at the end in order to recover money lost due to excessive fraud and waste.


Becker knew that Project Control Groups could be of service to both the project owner and general contractor especially when it came to audit, defining the project scope, reviewing bidders, claims by contractors, subs, and investigating suspicious invoices and change orders.


Becker wrote in depth of two areas in which the Project Controls Group could best serve. They are:


Project Process Monitoring

  • Audits and Assessments

  • Risk Management

  • Contract Administration

  • Document Control


Cost Monitoring & Reporting

  • Budget Control

  • Change Management

  • Invoice Management

  • Schedule Monitoring


The Project Controls Group could be involved throughout the project by providing oversight and assistance to management in the areas of planning, execution, close-out, as well as monitoring the company’s process for compliance of laws and regulations. Becker should be commended for his leadership in the areas promoting company policy, internal controls and audit as they relate to construction.


Jerry Ipsen is an ardent student of real estate and construction fraud. He has been involved in commercial real estate for years and as a Certified Fraud Examiner, has worked as the Compliance Officer writing internal controls and performing audit activities for real estate development.




45 views0 comments

Recent Posts

See All

Comments


bottom of page