Metro Development Group Eliminates Pay App Fraud with Automated Auditing

Metro Development Group·Mixed-Use Development

Overbilling Detected

$0 (undetected)$180K in first quarter

Pay App Review Time

2-3 hours each20 minutes

Math Error Detection

~60%100%

Front-Loading Incidents

8 per quarter0

The Challenge

Metro Development Group discovered a pattern of front-loading across several of their largest subcontractor pay applications. By the time the overbilling was identified, they had overpaid by more than $400,000 across three projects. The manual review process simply couldn't keep up with the volume of monthly pay applications.

Their project managers were reviewing G702/G703 forms manually, but with 200+ line items per application and tight submission deadlines, mathematical errors and front-loading patterns were being missed consistently.

The Solution

Metro implemented our pay application auditing engine, which automatically verifies every mathematical calculation on G702/G703 forms, detects front-loading patterns using the 25-point rule, and validates against the approved schedule of values.

The system provides project managers with a clear audit report highlighting specific concerns, allowing them to focus their review time on legitimate issues rather than manual calculations.

The system paid for itself in the first month. We caught a six-figure front-loading pattern that would have cost us dearly at project closeout.

-- James Park, CFO, Metro Development Group

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