The sanctions were handed to PwC and audit engagement partner Jonathan Hook in relation to the statutory audits of the consolidated financial statements of Galliford Try plc for the years ended 30 June 2018 and 30 June 2019.

At the time of the FY2018 and FY2019 audits, the company was one of the UK’s leading housebuilding, regeneration and construction groups. The valuation of construction contracts was identified as a significant risk in the audits.  In the 2019 audit an additional significant risk - that the recognition of material variations and claims on contracts may not be appropriate - was identified.

PwC was given a £5.5m fine, reduced to £3,038,750 for failures over the audit of long-term contracts. The firm was also slammed with a severe reprimand and admonished over the fact the audits did not satisfy the relevant requirements.