INDUSTRIES / CONSTRUCTION
Contractor receivables are tied to job progress, retainage and surety rights, which makes them among the hardest to lend against. Our exams reconcile the work-in-process schedule to billings, identify over-billed jobs, and separate receivables the lender can collect from those a surety or subcontractor can claim first.
RISKS WE TEST FOR
- Over-billing ahead of work actually completed
- Retainage that is not collectible until project close-out
- Bonded jobs where the surety has priority to contract proceeds
- Unpaid subcontractors and suppliers with lien rights
- Cost overruns hidden in the WIP schedule
- Pay-when-paid terms and slow owner payments
WHAT THE EXAM COVERS
- WIP schedule review and reconciliation to the general ledger
- Over/under billing analysis by job
- Progress billing and percentage-of-completion testing
- Retainage aging and project close-out status
- Lien waiver and subcontractor payment review
- Bonded versus unbonded job identification
COMMON INELIGIBLES
- Retainage
- Receivables on bonded jobs
- Over-billings
- Progress billings not approved by the owner
- Accounts subject to lien or pay-when-paid terms
- Government contracts without assignment of claims
Full ineligibles directory →