M&A Due Diligence: WIP Report Audit for Construction Sector Acquisitions
M&A Due Diligence: WIP Report Audit for Construction Sector Acquisitions
When evaluating a construction contractor or subcontractor for acquisition or investment, reviewing the Work in Progress (WIP) report is a crucial part of financial and operational due diligence. The WIP schedule provides a real-time snapshot of a company’s project performance, revenue recognition practices, and risk exposure. We help our clients identify potential red flags and perform project level assessment and review so that they can better understand their investments.
Work In Progress (WIP) Review Process
Construction companies present unique M&A risk: revenue is recognized over time, contracts are often front- or back-loaded, and a single distorted WIP schedule can misrepresent a company’s true financial position by millions of dollars.
Pre-LOI Assessment
High-level WIP and backlog review and project mapping.
Initial Due Diligence
Full WIP schedule audit, contract review, schedule review, job cost reconciliation, billing analysis, and interviews.
Deep Dive Analysis
Project site visits (selected), subcontractor confirmation letters, invoice review, contractor interview.
Report & Advisory
Formal written report with portfolio & project-level recommendations.
By the Numbers:
15 $B
Construction Costs Reviewed Annually
250000 +
Contractor & Subcontractor Invoices Reviewed
28 +
Years of Service
50
States Served
Our Services
Our services are intended to help private equity investors and lenders better understand the status of work in progress so that they can mitigate risk and understand thier investments.
High-Risk Project Identification
Review WIP schedule to identify projects that are high risk based on volume, status, or other factors.
Field Inspection and Interviews
An inspection that focuses on overall progress, constraints, financial status, and material deliveries. This includes interviews with key personnel.
Work In Progress Monitoring
Periodic assessments to understand status of projects. Typically done every month for ongoing projects during critical stages.
Professional Services for Institutional Clients
Company Types
We have experience in the review and audit of all disciplines of construction. This includes review of materials, progress, quality, and financial documents.
Site Utilities and Improvements
Framing and Building Envelope
Mechanical, Electrical and Plumbing (MEP)
Roofing and Waterproofing
Fire Protection and Fire Alarm Systems
Concrete and Steel
Interior Finishes
Vertical Transportation
General Contractors
Material & Equipment Manufacturers and Suppliers
Construction M&A Services Leadership

David Jones
Director of Transaction Services
David Jones brings over ten years of well-rounded experience in design, construction, facility assessments and project management to Pond, Robinson & Associates. His role is to serve as bridge for clients, helping them understand and develop the right technical or project management approach to each investment or exchange. Mr. Jones has provided services to institutional real estate investors and lenders and many developers and contractors.
Mr. Jones has experience with property condition evaluations and construction observation and compliance reviews related to all asset types, including commercial office, industrial, retail, and multi-family improvements. His consulting experience includes comprehensive reviews of design documents for planned projects, performing evaluations of existing properties, and acting as the owner’s representative during the construction of properties of various sizes and complexities.
Education
Bachelor of Science, Construction Management, University of Houston, Houston, Texas
Registrations
Associate Constructor, American Institute of Constructors, License 10711
LEED® Green Associate™, Green Business Certification Inc. Credential ID 11131858

John Maher
Director of Construction Services
Since joining Pond Robinson & Associates in 2015, John Maher has performed numerous property condition assessments, peer reviews and owner’s representation of new construction projects throughout the country.
Prior to joining Pond, Robinson and Associates and after college, Mr. Maher’s experience as an architectural project manager started in 2009. He was involved with designing, bidding, and performing field services for new construction and renovation projects. An area of special interest for Mr. Maher has been the assessment, design, and management of exterior building envelope rehabilitation projects.
Education
S., Architectural Studies, Southern Illinois University
Registrations
Registered Architect, Illinois and Wisconsin
US Green Building Council LEED® AP

Justin Lia
President
Justin Lia is the President of Pond, Robinson & Associates and brings over 25 years of diverse experience in commercial real estate. Having grown up in a family of contractors, engineers, architects and developers commercial real estate is a big part of Mr. Lia’s life. Mr. Lia has worked as a contractor, a construction inspector, a design engineer, a forensic engineer, a broker, a developer, and extensively as a real estate due diligence advisor for both transactional and occupier clients. His specialty is leveraging his extensive experience in commercial real estate to understand complex real estate transactions and guide clients through technical scopes of work that mitigate risk in their investments and manage the lifecycle costs of their buildings. Mr. Lia has been a registered professional engineer for over 20 years.
As a civil engineer, Mr. Lia was responsible for preparing commercial and residential site plans, due diligence reports/feasibility analyses, entitlements, infrastructure assessments (projects up to $3.7B), building inspections, and various structural and geotechnical engineering services. Clients include both public and private on a host of projects ranging from a runway extension on an air force base, slope stability for a Department of Energy particle collider, to the feasibility of large mixed-use sports and gaming complexes, to the structural design and retrofit of retail centers, to large earth retaining and waterfront structures, and a variety of others across all asset types. Mr. Lia has guided clients through the physical, environmental and capital planning due diligence process on many of the largest, most valuable buildings in the United States including: The Bellagio Hotel and Casino, the Willis Tower, multiple movie studios, a 15MM SF industrial/warehouse portfolio, large hospital/MOB portfolios, large multifamily portfolios, sale-leaseback transactions, retail malls, and many large office complexes. Mr. Lia is a subject matter expert in site, civil, geotechnical engineering, and real estate due diligence, and has served as an expert witness.
Education
Bachelor of Science, Civil Engineering, University at Buffalo
Introduction to Corporate Finance, University of Pennsylvania
Registrations
Professional Engineer, New York, 2004
STAAD Certified Engineer
OSHA 10 Hour Construction Safety and Health
A.CRE Accelerator Certificate (CRE Financial Modeling)
LEED AP Building Design + Construction, USGBC
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Discover the Impact of Our Work
Browse Our Website to Understand How Our Expertise Translates into Successful Outcomes for Our Clients.
Explore Now