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From auditing many construction investment projects, ATAX has found that the proposed finalisation value is often reduced because of recurring errors. Identifying these errors early helps investors and project management units complete their dossiers and shorten the verification and approval of finalisation.

1. Double-counted or incorrect quantities

Accepted and paid quantities exceed actual quantities or as-built drawings; one item is counted in several work items. Prevention: strictly reconcile accepted quantities with as-built drawings and construction logs.

2. Incorrect unit prices and norms

Unit prices applied at the wrong time, norms unsuitable for construction conditions, incorrect adjustment coefficients. Prevention: check estimates and price adjustment bases against contract terms.

3. Payments not matching the contract type

Lump-sum contracts with payments for variations that are not eligible for adjustment; adjustable unit-price contracts without correctly applying the formula. Prevention: follow contract conditions closely during acceptance and payment.

4. Payments exceeding the contract value or approved estimate

Additional quantities paid before contract appendices or adjustment approvals are in place. Prevention: complete approval procedures for variations before payment.

5. Incomplete legal documents

Missing decisions approving project or estimate adjustments, contractor selection results or completion acceptance records. Prevention: build a checklist of legal documents from commencement and update it regularly.

6. Costs outside the project scope

Recurring operating expenses or costs of other projects wrongly recorded as investment costs. Prevention: keep separate ledgers for each project and work item.

7. Compensation, support and resettlement costs without sufficient basis

Missing approved plans, payment records or receipts from compensated persons. Prevention: keep complete payment files for each household.

8. Unrecovered advances and unreconciled payables

Overdue contract advances not recovered; balances with contractors not matching. Prevention: reconcile balances periodically and before preparing the finalisation report.

9. Incorrect value of assets formed

Unreasonable allocation of common costs (project management, consultancy, interest during construction) to each asset, affecting historical cost and depreciation. Prevention: set clear and consistent allocation criteria.

10. Late finalisation

Finalisation later than the prescribed deadline leads to lost records, dissolved contractors, difficult reconciliation and possible disciplinary liability. Prevention: plan finalisation as soon as completion acceptance occurs and appoint the auditor early.

Conclusion

An independent audit is not only a mandatory procedure for many projects but also a tool that helps investors control costs and reduce the risk of disallowed costs. Learn more about the process: Construction project audit and its process (in Vietnamese).

Contact ATAX for an initial free consultation and a fee proposal tailored to the scale and nature of your project: https://atax.vn.