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Update | Construction: information under an audit clause

Understanding the extent of information that contractors may be expected to produce ?under an audit clause is becoming increasingly important, says Chris Holwell

15 February 2013

Following a recent case in the technology and construction courts, the extent of information that employers are able to request of contractors through audit clauses has become a major topic in debates relating to construction contracts. It has therefore become increasingly important for companies to understand what information they are obliged to present to their employers under an audit clause.

Audit clauses in construction contracts have nothing much to do with accountancy. They are clauses that oblige the contractor to provide all sorts of information to the employer and often to allow the employer to send auditors into the contractor’s ?offices to look through its records. Similar clauses are often put into consultants’ appointment contracts.

There is nothing to stop the employer’s chosen auditor being a construction litigation lawyer who is handling, or preparing, litigati...

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