Construction Project Auditing and Quality Assurance. May 24-26, 2011 American University of Sharjah Sharjah, United Arab Emirates

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1 Construction Project Auditing and Quality Assurance May 24-26, 2011 American University of Sharjah Sharjah, United Arab Emirates 1

2 Course Description In Megaprojects and Risk, the authors 1 study multibillion-dollar construction projects worldwide, finding that about nine out of 10 went over budget, with many running 40 percent over original estimates. The author, a professor of development and planning at a university in Denmark, concludes that sponsors of such projects systematically underestimate costs and environmental impacts, and overestimate revenues to win approval for their projects. So what are organizations to do? The answer may lie in better and earlier oversight. Project audits are sometimes done near or after the project end. This is especially true for government agencies, and constitutes what may be seen as coming in after the battle is over and bayoneting the wounded. Studies performed on public works investments in Norway show that quality assurance needs to be done at the beginning of the project and then performed periodically to be most effective. This course uses presentation, team exercises, articles and case studies. Benefits Achieved At the end of this three-day course, attendees will be able to: explain what constitutes a well-managed project explain the concepts of controls and governance in a typical construction/engineering project setting recognize the common problems experienced in a variety of construction/engineering projects and recommend typical solutions define typical project management controls for construction/engineering projects assist in evaluating project management controls Who Should Attend Auditors and project management office staff who have the responsibility for reviewing, auditing and monitoring projects Project managers who wish to understand how their projects will be audited Others who wish to gain a detailed understanding of what constitutes quality in a project, including financial managers and business analysts working on LEED projects within the past three years. Prerequisites Participants should have at least two years of work experience on construction/engineering projects or two years of experience in internal auditing or financial auditing. Alternatively, an introductory course in project management may be taken to complete prerequisite requirements if the work experience criteria have not been met. Course Duration Three days. PMPs are eligible for 21 PDUs. 1 Bent Flyvbjerg, Nils Bruzelius, Werner Rothengatter 1

3 Course Content Module 1: Overview Learning objectives Agenda and course structure Benefits of project management Goal of assurance/benefits of auditing and review Module 2: Context and Background Key definitions Contract types Types of project organizational structures Common problems what can go wrong Project management principles and standards Auditing standards Module 3: Governance and Management What is governance? Accountabilities and responsibilities Key governance and management roles and responsibilities Monitoring: roles and responsibilities what to look for Exercise Module 4: Audit Process Key steps Planning the audit Audit objectives Audit program: bid review, contract review, controls assessment, test of billings, control verification, schedule assessment, change order controls, claims management, project management, financial review, including earned value analysis Risk Assessment: Tailoring the audit program to the project Documentation Work papers and standards Interviews Site visits Audit report and opinion Follow up Article reading 2

4 Module 5: Risk Management Risk identification, prioritization and the risk universe Risk analysis: probability and impact Risk management in contracts and procurement Preliminary Design Review Index (PDRI) Tool Selecting the right projects to audit Periodic risk evaluation Controls design to account for risk Monitoring and auditing risk management strategy Exercise Module 6: Construction Project Life Cycle Assurance Opportunities The Project Life Cycle What are control points? Initiation: concept and feasibility Quality Assurance 1 Needs analysis, strategy and alternatives Planning/Design Quality Assurance 2 Contracting strategy, success factors, risk and uncertainty, cost and contingency, project organizational structure Procurement Evaluating the project schedule what to look for Evaluating the work breakdown structure what to look for Contracts and contractual relationships Recognizing fraud Transition to operations, turnover and close-out Monitoring: Project management what to look for Case Study Exercise Part 1 Module 7: Troubled Projects Characteristics of a troubled project Making the project successful options Typical findings and possible recommendations Characteristics of a well-run project Case Study Exercise Part 2 3

5 Course Director Joy Gumz CPA, CISA, PMP Joy Gumz has consulted with numerous Global 2000 organizations, including Novartis, Chevron, the Abu Dhabi National Oil Company, Ashland Oil, Credit Suisse, Wolseley, Boeing, Lockheed Martin, the United Nations, SAP AG and Siemens. She has consulted with the operational audit group of Siemens and developed the operational risk assessment processes for one of the world s largest oil refineries. She has taught project management and auditing courses at KPMG UK, Takreer Refinery, the Majid Al Futtaim Group, DHS, Parker-Hannifin, the University of Sharjah, Cal State University and the University of California as well as to other global organizations. She has also reviewed IT project management practices at several privately held firms and Global 2000 companies. She is the first female instructor to teach at the Abu Dhabi National Oil Company. Ms. Gumz brings a unique perspective to her teaching and consulting work by combining the fields of project management, information technology, accounting and auditing. A recent assignment was a risk assessment for SATORP, a joint venture of Saudi Aramco and the Total Group. The joint venture combines the resources of two of the largest integrated petroleum companies in the world to create an export refinery in Jubail, Saudi Arabia. Her professional memberships include the Project Management Institute, the Institute of Internal Auditors, and the Information Systems Audit and Control Association. She is a member of PMI s Technology Member Advisory Group, a 10-member board that provides advice on information technology. Venue This course will be held on the distinguished campus of American University of Sharjah, Free parking and free wireless Internet access are available to the guests. Internet spots and fax, photocopy and printing services are also available upon request. Material Instructor s handouts and presentation notes Certificate Participants who attend and complete the course obtain two Certificates of Accomplishment: one from AUS and one from AMIDEAST. The certificate awarded form AUS is signed by the university s Chancellor and Vice Chancellor for Enrollment Management. The certificate awarded from AMIDEAST is signed by the AMIDEAST Country Director. This certificate demonstrates to PMI that the participant has earned 21 Professional Development Units (PDUs) toward maintaining the PMP credential. 4

6 Course Fee The course fee includes three-day course attendance, course material, coffee breaks and lunches, and Certificates of Accomplishment. Public Fee, AED 5,500 Early Registration AED 5,000 (for registrations submitted one month before course starts) As AUS and AMIDEAST value team building within organizations, they offer a special discounted rate for organizations sponsoring 2 or more participants. For groups of 3 and above : AED 4,800 Registration closes two weeks before the first day of class Accommodation is not included in course fees. However, AMIDEAST/ AUS can recommend hotels with special discounted rates. Driver service from the hotel to AUS and back can be provided for participants staying in the recommended hotel (pick up and drop off timings are fixed). About AUS AMIDEAST Professional Development Courses American University of Sharjah (AUS) and America-Mideast Educational & Training Services Inc. (AMIDEAST), a not-for-profit educational organization, have a strategic partnership on testing and professional training. Both organizations have a common goal: to provide updated and advanced courses for professionals in the Gulf region for reasonable fees. Many successful courses have already taken place under this partnership and more are coming in the near future. As both AUS and AMIDEAST are aware of the importance of professional training as an investment in human capital, special arrangements, such as discounted fees and hotel reservations, are available for organizations sponsoring course participants. Executive education programs can be designed according to an organization s specific needs. AUS and AMIDEAST will ensure the instructor s availability and arrange the communication between the organization and the instructor. The organization usually will conduct the administrative tasks, but AUS/AMIDEAST can provide support upon request. Tailored Executive Courses Executive education programs can be designed according to an organization s specific needs. AUS and AMIDEAST will ensure the instructor s availability and arrange the communication between the organization and the instructor. The organization usually will conduct the administrative tasks, but AUS/AMIDEAST can provide support upon request. 5

7 Course Registration Form Construction Project Auditing and Quality Assurance May 24-26, 2011, American University of Sharjah Personal Details AUS ID (if applicable): Type: Vendor ( ) Personal ( ) Title: Name: Position: Dept: Tel: Fax: Car Info (model, color & plate #): (for parking permit purposes only) Company Details Organization: P.O. Box: City: Country: Website: Industry: Number of employees: Approving Manager: Position: Tel: Fax: Date and Venue Venue: Timing: American University of Sharjah Daily, 9:00 a.m. to 5:00 p.m. Workshop Fee Fee: Public Fee, AED 5,500 AED 5,000 per participant for early registrations AED 4,800 per participant (groups of 3 and above, AUS Alumni) Fee includes course attendance, course material, coffee breaks and lunches, and Certificates of Accomplishment Payment and Cancellation An invoice will be sent upon receipt of your registration form. For payments to AUS an AUS ID number will be issued. Please contact AUS for details. If a participant cancels three or more weeks before the course starts, a full refund applies less an administrative fee of AED 500. No refund applies for cancellations requested less than two weeks before the course start date. AUS and AMIDEAST reserve the right to make changes in the course program, venue and speakers or to cancel the course when conditions prevail. Declaration I have read and understood the refund policy and the cancellation conditions. Signature and Full Name: For any inquiries please contact: AUS: Tel /5 Fax AMIDEAST: Tel

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