Thiess Commercial Manager Audit

• Document No.

• Audit Title

• Client / Site

• Conducted on

  Date

• Prepared by

• Location
  Address

• Personnel

1. Contract Valuations (CV) and Forecasting

• b.      Does the original budget within the forecasting system reflect and align with the approved and signed off tender green sheet?

  Yes

  No

  N/A

• a. Is there an acceptable financial forecasting & reporting system and does it appropriately reflect the type of project being delivered?

  Yes

  No

  N/A

• c. Does the team demonstrate an understanding of the financial forecasting & reporting system and are they able to explain the difference/changes between the previous month’s forecast or P&L sheet, current month’s forecast and budget (costs, commitments, revenue and profit)?

  Yes

  No

  N/A

• d.      Are changes to the budget for each cost code managed using budget transfers and variations?

  Yes

  No

  N/A

• e.      Are gains and losses being shown for each code as they are made and not being transferred to later codes?

  Yes

  No

  N/A

• f.        Does the team demonstrate an understanding of and are they able to explain differences between a committed cost forecast system and a cost basis forecast system?

  Yes

  No

  N/A

• g.       Does the team demonstrate an understanding of each budget and its make up and exclusions within each cost code?

  Yes

  No

  N/A

• h.      Does the team demonstrate an understanding of the effect of head contract and subcontract variations on the forecast and are they able to explain claim/variation take up to budget in the current forecast?

  Yes

  No

  N/A

• i.        There is a manageable and conservative level of unapproved variations that have been taken up to the budget and no unapproved claims have been taken up?

  Yes

  No

  N/A

• j.        Does the forecast cost to complete reflect the forecast and current contract completion dates on the program?

  Yes

  No

  N/A

• k.       Does the team demonstrate an understanding of and are they able to explain differences in % cost & revenue to date compared to % time to date?

  Yes

  No

  N/A

• l.        Does the team demonstrate an understanding of and are they able to calculate under/overclaim’s accurately?

  Yes

  No

  N/A

• m.    Is there an understanding of the differences between cost/paid/accruals to date and work completed to date [earned value] vs claimed/invoiced to date and Planned Value?

  Yes

  No

  N/A

• n.      Does the team demonstrate an understanding of, and are they able to calculate and forecast pain/gain on share of savings projects or risk-reward share or abatement penalties?

  Yes

  No

  N/A

• o.      Does the team demonstrate an understanding of, is there a risk of exposure to and are they able to calculate and forecast liquidated damages under the head contract? Consider the status against the current contract program. Is there a need for a register of liquidated damages?

  Yes

  No

  N/A

• p.      Does the team demonstrate an understanding of, and are they able to calculate rise and fall (escalation) in relation to revenue and cost?

  Yes

  No

  N/A

• q.      Is the team able to manage, understand and explain what contingencies are made in the forecast/CV, any changes in contingency amounts and any available or non available contingency amounts?

  Yes

  No

  N/A

• r.        Is the team able to record and understand productivity to date and forecast?

  Yes

  No

  N/A

• s.       Is there an understanding of what bank guarantees, insurance bonds or retentions are being held by the client and their forecast to be returned?

  Yes

  No

  N/A

• t.        Is the project cash positive?

  Yes

  No

  N/A

• u.      Is the cashflow position relatively reflective of the forecast financial position and can the team demonstrate why there are differences?

  Yes

  No

  N/A

2.       Risk and Opportunities

• a.       Is there an acceptable risk and opportunity register in place and does it appropriately reflect the type of project being delivered?

  Yes

  No

  N/A

• b.      Is there an acceptable process and procedure around identifying, managing and updating risk and opportunity and does it appropriately reflect the type of project being delivered?

  Yes

  No

  N/A

• c.       Is there are copy of the tender R&O register and does the current R&O register include the risks and opportunities identified during the tender period and are the mitigation treatments (identified during tender) being carried out?

  Yes

  No

  N/A

• d.      Are the identified risks appropriate to the project being delivered?

  Yes

  No

  N/A

• e.      Is there adequate mitigation treatment or treatment plans identified for each of the risks and are the treatments or plans being carried out?

  Yes

  No

  N/A

• f.        Does the mitigation treatment or treatment plans reduce the risk to an acceptable level?

  Yes

  No

  N/A

• g.       Does the team demonstrate an understanding of and are they able to calculate appropriate contingency amounts for risk & opportunity where applicable?

  Yes

  No

  N/A

• h.      The contingency amounts listed within the R&O register are being managed separately (not within each cost code) and match the amounts within the forecast, P&L sheet and/or CV reporting?

  Yes

  No

  N/A

3.       Head Contract / Alliance Agreement (Deed)

Generally

• a.       There is a copy of the head contract / alliance agreement and it has been correctly executed?

  Yes

  No

  N/A

• b.     Have the Approval limits - Australia TM-F&A-PT-001-ADM been complied with in regard to contract execution?

  Yes

  No

  N/A

• c.       There is a completed Rights and Obligations Summary (TP-LEG-FO-007) clearly reflecting the requirements of the head contract / alliance agreement?

  Yes

  No

  N/A

Progress Claims / Tax Invoices

• d.      The team can demonstrate an understanding of and manage the conditions precedent to submission of a progress claims/invoices?

  Yes

  No

  N/A

• e.      There is an accurate register of progress claims & tax invoices identifying submitted, certified and paid?

  Yes

  No

  N/A

• f.        The client is making payments in accordance with the contractual timeframes?

  Yes

  No

  N/A

Variations / Scope Changes

• g.       The team can demonstrate an understanding of what gives us or does not give us an entitlement to a variation / scope change under the head contract?

  Yes

  No

  N/A

• h.      The team can demonstrate an understanding of how errors, ambiguities or inconsistencies are dealt with under the contract?

  Yes

  No

  N/A

• i.        There is an appropriate variation register being kept for the project indicating variation claim number, variation order number, description, status, value submitted and approved, amount taken up to budget, relevant submitted and approved dates?

  Yes

  No

  N/A

• j.        The variation register aligns with the variations / orders within the financial reporting system (JDE)?

  Yes

  No

  N/A

• k.       The team can demonstrate an understanding of and manage the conditions precedent (including content and timing) to submission of a variation?

  Yes

  No

  N/A

• l.        Variations are being submitted and approved by the client in a timely manner?

  Yes

  No

  N/A

Extension of Time or Relief Events

• m.    The team can demonstrate an understanding of what gives us or does not give us an entitlement to an Extension of Time (EOT) / Relief Event under the head contract?

  Yes

  No

  N/A

• n.      There is an appropriate Extension of Time or Relief Events register being kept for the project indicating EOT claim number, EOT approval number, description, status, time submitted and approved, relevant submitted and approved dates?

  Yes

  No

  N/A

• o.      The team can demonstrate an understanding of and manage the conditions precedent (including content and timing) to submission of an Extension of Time or Relief Event?

  Yes

  No

  N/A

• p.      Extensions of Time or Relief Events are being submitted and approved by the client in a timely manner?

  Yes

  No

  N/A

Performance Incentive’s and Liquidated Damages

• q.      If there are performance incentives, KPI’s, abatement schemes, liquidated damages and term extensions applicable to the contract, are the relevant measures in place to track, record and measure these?

  Yes

  No

  N/A

• r.        Is the team able to understand and implement the performance incentives, KPI’s, abatement schemes, liquidated damages and term extensions under the head contract?

  Yes

  No

  N/A

Insurances

• a.       Relevant insurances have been obtained and put in place for the project?

  Yes

  No

  N/A

4.       Procurement & Subcontract / Consultancy / Supply Agreements

Generally

• a.       There is a procurement & letting schedule in place in which progress is being tracked and monitored. These may be separate documents. These schedules track at a minimum cost codes, package descriptions, key milestones/dates, lead time dates, tender dates (target & actual), award dates (target & actual), contract execution dates (target & actual), budgets/SOR’s, target budgets/SOR’s, actual committed/let values, gain/losses against budgets/SOR’s. There may also be a procurement plan.

  Yes

  No

  N/A

• b.      Are packages being competitively tendered with an appropriate quantity of competitors?

  Yes

  No

  N/A

• c.       Is an appropriate comparison being completed on the tender pricing to ensure inclusions are “apples for apples” against relevant budget / SOR items?

  Yes

  No

  N/A

• d.      Correct entities have been contracted with in subcontract agreements, supply agreements and consultant agreement by checking ABR/ASIC websites for correct ABN/ACN & name)?

  Yes

  No

  N/A

• e.      Have the Approval limits - Australia TM-F&A-PT-001-ADM been complied with in regard to purchasing?

  Yes

  No

  N/A

• f.        If the National Code of Practice for the Construction Industry is applicable to the project, the Invitation to tender TP-LEG-CO-016 has been used and the appropriate undertakings and declarations have been executed and returned (including copies of DEEWR and Fair Work Australia letters) prior to awarding the contract?

  Yes

  No

  N/A

• g.       If subcontractors, consultants or suppliers are working on the project, agreements are in place and have been correctly executed?

  Yes

  No

  N/A

• h.    Thiess standard forms of agreement TP-PRO-PT-001are being used?

  Yes

  No

  N/A

• a.       Subcontract, Consultancy and Supply Agreements reflect the relevant requirements of the head contract that need to be flowed on?

  Yes

  No

  N/A

• b.      Agreements are adequately drafted and include a concise scope of works?

  Yes

  No

  N/A

Security

• b.      Is there a register to obtain, manage and release security (bank guarantees or retention)?

  Yes

  No

  N/A

Progress Claims / Tax Invoices

• c.       Is there an accurate register of progress claims & tax invoices for each subcontract, consultancy and supply agreement identifying submitted, certified and paid amounts?

  Yes

  No

  N/A

• d.      Are progress claims being correctly assessed and signed off?

  Yes

  No

  N/A

• e.      Are payment schedules under the security of payment legislation being correctly issued in the correct format and timeframes?

  Yes

  No

  N/A

Variations / Scope Changes

• c.       The team can demonstrate an understanding of what gives or does not give each subcontractor, consultant or supplier an entitlement to a variation / scope change under the relevant agreement?

  Yes

  No

  N/A

• d.      The team can demonstrate an understanding of how errors, ambiguities or inconsistencies are dealt with under the agreements?

  Yes

  No

  N/A

• e.      There is an appropriate variation register being kept for each subcontractor, consultant or supplier indicating variation claim number, variation order number, description, status, value submitted and approved, amount forecast, relevant submitted and approved dates?

  Yes

  No

  N/A

• f.        The variation registers align with the variations / orders within the financial reporting system (JDE)?

  Yes

  No

  N/A

• g.       The team can demonstrate an understanding of and manage the conditions precedent (including content and timing) to submission & approval of a variation?

  Yes

  No

  N/A

• h.      Variations are being assessed and approved in a timely manner?

  Yes

  No

  N/A

• i.        Variations are being flowed through and linked to head contract variations where appropriate?

  Yes

  No

  N/A

Extension of Time or Relief Events

• j.        The team can demonstrate an understanding of what gives or does not give each subcontractor, consultant or supplier an entitlement to an Extension of Time (EOT) / Relief Event under the agreement?

  Yes

  No

  N/A

• k.       There is an appropriate Extension of Time or Relief Events register being kept for each subcontractor, consultant or supplier indicating EOT claim number, EOT approval number, description, status, time submitted and approved, relevant submitted and approved dates?

  Yes

  No

  N/A

• l.        The team can demonstrate an understanding of and manage the conditions precedent (including content and timing) to submission of an Extension of Time or Relief Event?

  Yes

  No

  N/A

• m.    Extensions of Time or Relief Events are being assessed and approved in a timely manner?

  Yes

  No

  N/A

Performance Incentive’s and Liquidated Damages

• n.      If there are performance incentives, KPI’s, abatement schemes, liquidated damages and term extensions applicable to the agreements, are the relevant measures in place to track, record and measure these?

  Yes

  No

  N/A

• o.      Is the team able to understand and implement the performance incentives, KPI’s, abatement schemes, liquidated damages and term extensions under the head contract?

  Yes

  No

  N/A

• p.      There is a calculation of liquidated damages on file which is the basis of the amount included within relevant agreements?

  Yes

  No

  N/A

Insurances

• q.      Relevant insurance certificate of currencies have been obtained from each subcontractor and consultant?

  Yes

  No

  N/A

• Lead Auditor to sign off at completion

  Sign

• Area Manager to sign off at the completion of the audit

  Sign

• Select date

  Date

NOTE* This document is not a TMS registered document and should be used for reference only