SAMPLE REPORT
Synthetic project data · real methodology and format. Your report is produced from your own pay application, specification, and submittal log.
TALOS Three-Way Match Forensic Audit
Pay Application № 4 — Forensic Audit Report
Hillcrest Medical Office Building, Phase 2 (fictional sample project) · Period ending 01/31 · Documents: G702/G703 pay application · Division 23 & 09 specifications · submittal log · Audit ID TAL-SAMPLE-0001
Audit verdict
REJECT
3 findings · 1 critical. Recommend holding this application until flagged lines are resolved.
Estimated recovery
$70,000–$110,000
across 2 substitution findings · plus $31,000 held pending documentation
Executive summary. This application bills $533,000 across 4 sampled line items. Cross-referencing each line against the project specification and the approved submittal log surfaced two material substitutions billed at specified-product pricing — premium equipment and finishes invoiced while the approved submittals show standard-grade alternates — and one line with stored materials lacking required documentation. Each finding cites the exact document, page, and line so it can be verified in minutes.
1 Document sources
Contract requirements
Project Specification
Sections 23 64 00, 09 64 00 · 214 requirements indexed
INDEXED
Approved materials
Submittal Log
31 submittals · 3 cross-referenced in this audit
INDEXED
Financial claim
Pay Application № 4
G702/G703 · 26 line items · 4 sampled this audit
INDEXED
2 Three-way match findings
FINDING 01 · LINE 04
CRITICAL
SUBSTITUTION
Chiller billed as premium; approved submittal is a standard unit
$50,000–$75,000
The application bills $285,000 for a “Trane high-efficiency commercial chiller, 500-ton, premium grade with variable-speed drive.” The approved submittal for this scope (23-B) is a Carrier 30XA-400 standard-configuration unit, 400-ton — noted on the log itself as “standard efficiency.” Specification 23 64 00 mandates a premium variable-speed unit, so the substitution is also a specification non-conformance.
Contract requiresPremium commercial-grade variable-speed chiller, ASHRAE 90.1 premium efficiency or betterSpec 23 64 00 · MANDATORY
Submittal showsCarrier 30XA-400, 400-ton, standard configuration — “standard efficiency unit”Submittal 23-B · p.8 · APPROVED
Pay app claimsTrane high-efficiency 500-ton premium chiller w/ VSDLine 04 · p.3 · $285,000
FINDING 02 · LINE 07
HIGH
SUBSTITUTION
Hardwood flooring billed; approved submittal is laminate
$20,000–$35,000
The application bills $125,000 for “commercial-grade premium hardwood flooring — select red oak, site finished.” The approved submittal for this scope (09-A) is TrafficMASTER builder-grade laminate, logged explicitly as a “budget alternative to hardwood.” No credit change order for the downgrade appears in the documents provided.
Contract requiresSelect red oak, site-finished, per finish scheduleSpec 09 64 00
Submittal showsTrafficMASTER TM-OAK-125 laminate — “budget alternative to hardwood”Submittal 09-A · p.12 · APPROVED
Pay app claimsPremium select red oak, site finishedLine 07 · p.4 · $125,000
FINDING 03 · LINE 12
MEDIUM
DOCUMENTATION
Stored materials billed without required documentation
$31,000 held
Line 12 bills $78,000 for the hospital-grade LED lighting package, of which $31,000 is stored materials. The submittal (26-C) conforms, but no bills of sale, insurance certificates, or stored-material inventory accompany the application — documentation the contract requires before stored materials are payable.
Contract requiresStored materials payable only with bill of sale, insurance, and inventory documentationGeneral Conditions §9.3.2
Submittal showsLithonia LBL-HOSP-4L — conforming fixture packageSubmittal 26-C · p.15 · APPROVED
Pay app claims$31,000 in stored LED fixtures, no supporting documentationLine 12 · p.5 · $78,000
3 Financial summary
| # | Severity | Category | Description | Exposure |
|---|
| 01 | CRITICAL | Substitution | Chiller — premium billed, standard approved | $50,000–$75,000 |
| 02 | HIGH | Substitution | Flooring — hardwood billed, laminate approved | $20,000–$35,000 |
| 03 | MEDIUM | Documentation | Stored materials — undocumented | $31,000 held |
| Total flagged this application | $101,000–$141,000 |
4 Recommended actions
CRITICALFinding 01 — hold Line 04 ($285,000) pending verification. Require the contractor to reconcile the installed unit against Submittal 23-B; if the Carrier unit was installed, issue a credit change order to the approved product's value or require replacement per Spec 23 64 00.
HIGHFinding 02 — hold Line 07 ($125,000). Field-verify installed flooring; if laminate, price the delta and issue a credit change order before certification.
MEDIUMFinding 03 — decertify $31,000 of stored materials until bills of sale, insurance certificates, and inventory documentation are provided per §9.3.2.