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An Audit Report on Construction Management at the University of Texas at Austin

August 2006

Report Number 06-052

Overall Conclusion

The University of Texas at Austin's (University) controls over construction projects are adequate to ensure compliance with laws and regulations related to the award of construction projects. However, final project costs and timelines often exceed initial estimates because of frequent changes in project funding and University priorities.

In 2003, the University's Department of Physical Plant performed an internal critique and analysis of its entire management structure and processes. That department subsequently arranged for a team of three qualified individuals from peer organizations to completely review its processes and recommend organizational and procedural improvements. As a result of this evaluation, the Department of Physical Plant was reorganized, and Project Management and Construction Services (PMCS) was created as a separate department to manage renovation and construction projects. Our audit focused on, but was not limited to, the work PMCS performs.

PMCS does a professional job of responding to the constantly changing demands of the customer base that it serves. It has implemented many of the recommendations made in the external evaluation and continues to make changes. However, our audit identified the need for continued improvements in certain areas.

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