New Caltrans Audit Rules: Are You Prepared?

  • 6/25/2025
Road construction worker on job

Key insights

  • If your construction projects involve claims over $500,000 with Caltrans — or any agency following Caltrans specs — you could be facing mandatory job-specific audits.
  • This audit must be conducted by an independent CPA and is required to be performed under Government Auditing Standards.
  • The audit report must be submitted within 70 days of the work’s completion.

Act now on the 70-day Caltrans audit requirements.

Consult an Advisor

As the construction industry continues to evolve, it's crucial to stay ahead of regulatory requirements impacting project compliance and reimbursement.

The most recent version of the California Department of Transportation (Caltrans) standard specifications mandates contractors — both prime and subcontractors — submit to job audits for claims exceeding $500,000.

These are job specific audits assessing the adequacy of your accounting systems, cost allocation practices, and adherence to both state and federal regulations. These audits are complex and time-sensitive — and non-compliance can delay payments or jeopardize future contracts.

What you need to know about Caltrans audits

Caltrans specifications now require audits for claims over $500,000. This requirement is not limited to Caltrans jobs, but any city, county, or other agency adhering to Caltrans specifications.

This audit must be conducted by an independent CPA and is required to be performed under Government Auditing Standards. The audit report must be submitted within 70 days of the work’s completion.

How CLA can help with Caltrans audits

CLA provides independent CPA audit services and claims audit support designed to align with Caltrans requirements. Our team has worked with several large contractors to help them address the complexities of these audits.

Let us help you proactively prepare your documentation and processes to meet Caltrans standards with confidence. Given the 70-day window for submitting the audit, we encourage you to reach out as soon as you anticipate a potential claim.

Contact us

Act now — the 70-day Caltrans audit deadline starts the moment the work ends. Complete the form below to connect with CLA.

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