Confidence in Every Phase: The Power of Mid-Project Construction Audits

BlogContract Compliance Audit
Authored by Patrick Gahagan | Director

Procurement leaders and capital project executives know this well: on large-scale construction projects, clarity and control are everything. Budgets are tight, schedules are aggressive, and small mistakes can quietly ripple across thousands of line items and subcontractor invoices.

One of the most efficient ways to stay ahead – without slowing down progress – is through a mid-project construction audit.

A Strategic Checkpoint That Pays Off

Mid-project audits are a simple, high-leverage step that help maintain compliance, control capital spend, and protect project margins. They’re also one of the most underutilized tools in large construction ventures.

Sure, you trust the numbers in front of you – but are you confident in the processes behind those numbers?

A mid-project audit provides that deeper visibility. It’s not about detecting fraud. It’s about identifying gaps, oversights, and inconsistencies early – while they’re still easy to correct and before they snowball into costly, time-consuming issues later.

Real-World Results: A Mid-Project Audit in Action

One of SC&H’s clients – a highly experienced builder – was managing the construction of a nearly $1 billion power plant, a complex, high-stakes infrastructure project. Recognizing the complexity of the project, they engaged our team to conduct a mid-project audit.

The results were immediate.

The audit uncovered an unnoticed payroll issue: several key subcontractors were not adjusting bill rates for highly paid union trade workers, who had exceeded federal and state wage-based payroll tax thresholds. But because no one had adjusted for those limits, overpayments were made to subcontractors – a result of miscommunication due to both parties believing the other was tracking it.

This wasn’t fraudulent or malicious. It was a disconnect in the process. It added up quickly, and could have been much worse if it remained unchecked.

Because they caught it mid-project, the team was able to recover significant overpayments, improve their tracking of union wages and tax thresholds, and avoid further risk, Better still, the project stayed on time – and the subcontractor relationships remained strong.

Audits Without Disruption: How the Process Works

One of the most common objections to a mid-project audit is that it might interrupt the pace of work. That’s understandable – but it’s also not true.

When part of a strategic, planned process, mid-project audits run quietly in the background. Auditors work directly with the general contractor’s back-office team – not with the on-site crews. While construction continues on-site, auditors are reviewing contracts, invoices, and supporting documentation behind the scenes.

Put simply: the people pulling numbers aren’t the same people laying bricks.

By discussing the audit plan early and building it into the project timeline, procurement and project leaders can gain critical insights without delaying delivery – making the entire process run seamlessly.

The Value of Peace of Mind

“What is your peace of mind worth on this project?” It’s a question we often ask – and it usually gives clients pause. Because as projects grow in size and complexity, so does the cost of unchecked risk.

Mid-project construction audits offer executives a way to confirm alignment between project expectations and financial execution. From billing accuracy to vendor oversight and transparency, they serve as a strategic tool – ensuring every dollar is spent as intended, in the spirit of risk mitigation and mutual protection.

Don’t Wait for the Final Invoice

The best time to audit isn’t always at the end – it’s often right in the middle, when adjustments can still be made and value can still be protected.

For procurement and sourcing teams managing capital construction projects, a mid-project audit offers a low-disruption, high-return opportunity to:

  • Validate subcontractor billing accuracy
  • Ensure compliance with wage and tax thresholds
  • Uncover process gaps before they scale
  • Strengthen vendor relationships through clarity and alignment

Let’s Move Your Project Forward – With Confidence

At SC&H, we support capital project teams with strategic construction audit services designed to add value – not disruption.

Whether you’re in the early stages of planning or deep into execution, a mid-project audit can provide the visibility and assurance needed to finish strong.

Connect with our team to
learn how we can help!

Reach Out to Our Team Today

Related Insights

VIEW MORE INSIGHTS

Subscribe to our Insights

A collection of insights about our capabilities, solutions, people, and client successes.

SC&H
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.