Architecture, Engineering, and Construction Management Firms Need Overhead Audits to take advantage of the new needs of government
In recent years, more and more architectural and engineering (“A/E”) firms are finding that they must have an audit before the government will approve their invoices.
In this current environment of economic downturns, new trends are emerging in the world of construction for architectural and engineering firms.
New trends also show that firms are seeking to develop government projects. However, government projects require a completely new set of rules and accounting requirements. Let us help navigate you through these new requirements like audited overhead rate in accordance with the Federal Acquisition Regulation (“FAR”), allowable cost, and proper financial recording.
Are you now ready for the new needs of government, due to the, aging infrastructure, storms, fires, and other disasters? Let us help you prepare for the federal, state, and local requirements so when it’s time you are ready.
The economic downturn reduced capital projects and caused more firms than ever to seek government contracts. Right now the government is increasing oversight and focus on overhead rates and asking design and Construction Management firms to use audited overhead rates rather than estimates if they want to do business with them.
State-specific rules change to unified approach using Federal rules – Most states previously had their own rules for various items, including limits on the allow-ability of certain expenses and limits on compensation, stock options, and bonus expense. The new guidelines will standardize states to follow the common interpretation of FAR-based overhead rates.