The Auditor General’s Audit Work Plan included a review of City construction contract warranties. This review was selected due to the significant amount of funds involved and previous Auditor General reports identifying deficiencies in construction project warranty tracking and follow-up.
This report provides four recommendations which will strengthen controls over construction contract warranties. The implementation of the four recommendations included in this report will improve warranty and performance bond tracking, and provide information related to the cost effectiveness and benefits of construction project warranties and performance bonds. Potential cost savings may be realized by reducing the warranty period on certain construction projects from two years to one year.