Qatar- Auditors host seminar on cost containment

Date

11/25/2015 10:39:10 PM

(MENAFN- The Peninsula) Participants at the seminar.

DOHA: The Institute of Internal Auditors (IIA) Qatar hosted a seminar sponsored by Protiviti Qatar on the topic “Review for Controls Cost Containment and Transparency in Capital Projects”.

Internal auditors project managers accountants and guests attended the event at Oryx Rotana Hotel.

The presentation was made by Randall Coxworth Managing Director at Protiviti US.

Randall started his presentation by bringing out recent surveys that indicated that general contractors meet cost and schedule expectations on less than 12 percent of projects and that 40-50 percent of major construction projects run longer than planned and incur significant cost overruns. He said that the global cost of fraud and corruption in the construction industry could result in potential annual losses to owners in excess of $1.5 trillion by 2025.

“Our experience indicates that through effective programme and project management and control owners can typically achieve cost savings of 5-10 percent of total contract value as well as mitigate significant project risks and prevent fraud waste and abuse” Randall stated.

Capital projects per se contain several inherent risks if controls are not built in at the appropriate phases and if management and auditors do not focus on the key performance criteria.

Combining Internal Audit and Capital Project Assessment Methodologies is the way to go Randall recommended.

Randall addressed the six elements of infrastructure and the capability maturity model. There is an integrated link between these elements of infrastructure and the level of maturity and capability of the organisation.

Several potential risks were discussed to emphasise his view that risk management must follow the project life cycle and it should be a continuous process throughout the project.

Randall also emphasised the need for effective communication in the project. Andrew North Managing Partner of Protiviti Qatar said “The control and risk management of large capital projects is a vital element in fulfilling Qatar’s National Vision”.

“This seminar equipped participants with new perspectives and an urgency to review the current process of project risk assessment project control review and evaluation and to assess projects within the framework of the organisation’s capability model.

The potential risk areas such as Scope Cost Time Risk Quality Human Resource Communication Safety Procurement Finance and Claim were elucidated with check lists on respective control requirements and appropriate audit procedures” said Sundaresan Rajeswar IIA Board member who coordinated the event. Christian Adonis and Girish Jain IIA board members addressed the gathering.

The Peninsula

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