City Auditor releases Roads Quality Assurance Supplementary Audit

HAMILTON, ON - The Office of the City Auditor presented a Roads Quality Assurance Supplementary Audit focused on completing some additional, targeted work in the area of quality assurance.

The Supplementary Audit assessed the management of the City’s road assets in order to identify opportunities for improved economy, efficiency and effectiveness in two areas:

• Processes for comprehensive weight validation of construction materials and disposed excess contaminated native material where the contract payments are tied to the weights of such materials.

• The process to test and validate if the asphalt friction course aggregates for high volume roads align with contract specifications and job mix formulas.

To strengthen controls and enhance the value for money achieved in the City’s Roads Program, the Supplementary Audit includes five new recommendations:

• That consideration be given to increasing the inspection levels by designing and adopting a risk-based approach for weight validation processes or the use of all-inclusive lump sums and square meter payments.

• That the resources, training and oversight in place be evaluated to ensure that weight validation, inspection and payment processes are adequately resourced to ensure compliance to the process.

• That the quality and comprehensiveness of construction project documentation is improved (including recordkeeping in the Inspectors’ Daily Diaries) by implementing relevant guidelines and/or standard operating procedures.

• That quality assurance guidelines and standard operating procedures, including plant inspections and Petrographic Testing for premium asphalt aggregates, be risk-based and be formally documented and adhered to.

• That consideration be given to expanding the quality assurance function during peak construction periods of the year in order adequately manage the risks associated with the construction activities.

The Roads Quality Assurance Supplementary Audit follows the completion of a Roads Value for Money (VFM) Audit released in July 2021. The Office of the City Auditor actioned the Supplementary Audit after receiving a confidential Fraud and Waste report that identified some additional issues that, if resolved, could add value to the City of Hamilton’s road infrastructure projects.

Areas that were previously addressed in the Roads Value for Money Audit were not revisited in the Supplementary Audit.

The Supplementary Audit includes details about the work and practices related to the Red Hill Valley Parkway Resurfacing Project. Information related to the management or reporting of skid resistance or friction is part of the Red Hill Valley Parkway Judicial Inquiry and beyond the scope of this audit.

Quick Facts

• The Roads Value for Money Audit was included on the Office of the City Auditor Work Plan 2019 to 2022 and evaluated the City’s roads infrastructure.

• With a replacement cost of over $5.2 billion dollars, the City of Hamilton’s investment in road assets is one of its largest.

• Obtaining optimal value for money in this investment requires a successfully coordinated and effective set of activities, including asset management, planning, condition tracking, quality assurance, procurement, contract administration and financial management.

• Management of roads should pivot its strategies towards an adequate system of quality assurance during construction to improve value for money achieved in the Roads Program.