Selected aspects of construction cost management
The purpose of the review was to determine the adequacy of procedures for the control over architect and engineer (A and E) costs, contingency and residual construction funds, and the quality of construction. Only selected aspects of construction were investigated; namely the adequacy of controls to ensure that (1) engineering, design, and inspection costs were reasonable; (2) contingency and excess construction funds were properly used, and (3) procedures for detecting substandard construction work were adequate. The review consisted of an examination of records, and interviews with responsible Department of Energy (DOE) officials. Field visits were made to the Albuquerque, Chicago, Oak Ridge, and San Francisco Operations Offices between February and June 1983, and Headquarters work was completed in the first part of 1984. The individual operations offices had improved the controls and procedures for identifying substandard construction work, and that such procedures were adequate. Further improvements are needed, however, in the areas of (1) managing and controlling contingency and residual construction funds, (2) controlling and accounting for architect and engineering costs, (3) selecting architect and engineering firms, and (4) accounting and reporting of cumulative construction costs. We also noted a need for DOE Headquarters to standardize, and more closely manage, the Department's construction program. There is a need to clarify the role of operating contractors in managing construction contracts in conformance with Departmental policy. This is our first audit report on the subject of construction.
- Research Organization:
- USDOE Office of Inspector General, Washington, DC
- OSTI ID:
- 6791201
- Report Number(s):
- DOE/IG-0208; ON: TI84016925
- Resource Relation:
- Other Information: Portions are illegible in microfiche products. Original copy available until stock is exhausted. Report to The Secretary
- Country of Publication:
- United States
- Language:
- English
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