Financial and technical audit

Financial and technical audit and monitoring help the investor, bank, owner or developer to obtain an independent assessment of the state of the construction project. ERA CAPITAL analyzes the budget, financing, timing, scope and quality of the work performed, identifies deviations and risks and forms recommendations for the further implementation of the project.

In the construction project, the financial and technical parts are closely related. Changing the design decision can affect the budget, the delay of the contractor on the calendar schedule, and the deviation of the actual volumes from the documents on the amount of funding.

Therefore, it is important for an investor, proprietor, or financier to evaluate a project from multiple perspectives simultaneously.

ERA CAPITAL conducts financial and technical audit and monitoring of construction projects. Specialists analyze the documentation, actual readiness of the facility, budget, schedule, quality of work and key implementation risks.

How audit is different from monitoring

The financial and technical audit assesses the status of the project at a certain date. This format can be used before the acquisition of the facility, to verify the current situation or to prepare an independent opinion.

Financial and technical monitoring involves regular monitoring of the project in the implementation process.

The audit records the state of the object, monitoring shows the dynamics of changes. In both cases, the challenge is to compare the documents, actual implementation and financial performance of the project.

When a financial and technical audit is required

The service is relevant when the decision-making party does not have enough information only from the reporting of construction participants.

Verification may be required:

• before financing or acquisition of the facility under construction;
• If necessary, assess the actual level of readiness;
• Substantial changes to the budget or deadlines;
• to monitor the use of funding;
• when there are disagreements between the project participants;
• Regular supervision of construction by the investor or lender.

Independent assessment allows you to form a single picture: the documentation describes the planned result, the survey records the actual state, financial analysis shows the impact of the identified deviations on the project.

Analysis of documentation

Financial and technical verification begins with the study of documents that determine the parameters of the project.

Experts analyze the source data, permits and project documentation, contracts, schedules and materials necessary to understand the current status.

Consistency of information is of particular importance. If the budget is formed for one volume of work, and the design decisions have already changed, the financial model may no longer reflect the actual state of the project.

Verification of construction work

Documentary status should be compared with the situation on the site.

Specialists assess the completed volumes, the quality of work and the correspondence of actual progress to the calendar schedule. If necessary, the engineering systems and infrastructure elements of the facility are analyzed.

This approach allows you to see the difference between the planned, declared and actually executed volume.

Financial analysis of the project

The financial part of monitoring is not only related to payments already made.

To understand the status of the project, it is necessary to take into account the approved budget, current obligations, sources of funding, work performed and future costs.

ERA CAPITAL analyzes financial indicators, technicians assess physical readiness, the final conclusion links these data with each other.

It is this connection that is important for the investor: a high share of the spent budget by itself does not indicate how close the object is to completion.

Timing control

Deviation from the schedule can lead to financial consequences: an increase in the life of contractors, a change in the cost of procurement, the postponement of the commissioning of the facility and additional costs.

Therefore, the calendar schedule is considered together with the technical readiness and budget.

The expert fixes the backlog, the analysis reveals its possible impact, the customer receives information for the management decision.

What is the result of the audit

The format of reporting depends on the task and stage of the project.

The result may include:

• a description of the current status of the project;
• evaluation of documentation;
• analysis of actual readiness;
• verification of the quality and scope of work;
• analysis of budget and funding;
• assessment of the implementation of the calendar schedule;
• list of identified risks;
• recommendations for further action.

The main value of the report lies not in the amount of information, but in the ability to link technical facts to financial implications.

Financial and technical monitoring as an investor’s tool

It is important to understand not only how much money has already been invested, but also how the current status of the project fits the plan.

Regular monitoring allows you to see changes before construction is completed. If a deviation is detected, it remains possible to assess its cause and determine further actions.

ERA CAPITAL considers financial and technical control as a system of interconnected data: the construction site shows actual progress, the budget reflects financial commitments, the schedule determines the timing, and independent analysis combines indicators into a clear picture of the state of the project.