For Lenders and Equity Partners, understanding the quality and status of any given project at acquisition and continuously assessing risk during the design and construction phases is a critical component to any deal or asset manager executing fiduciary oversight to the investment.
Having a familiarity with institutional lenders is instrumental in establishing meaningful communication with the lender’s asset management team. By typically providing monthly reports, the lender can independently monitor the status of the project and be appraised to any change in the development’s risk profile on a timely basis.
- Review of the design, zoning, budget, and contract documents to determine the completeness of the scope, adherence to budget, an opinion of schedule, and key aspects of the project which may pose a risk to the project’s schedule, budget, or quality.
- Prepare an estimated draw schedule
- Visit the site on a monthly basis to evaluate the progress and quality of the construction
- Review the contractor’s application for payment and provide recommendations to such application
- Review the status of the project’s insurance documentation
- Anticipate and forecast the following month’s activities
- Review change order negotiations
- Identify other types of risks with regards to non-payments, over-billings, labor disputes, long lead ordering schedule, shop drawing submittals, RFI expediting and others.
- Review all close out materials and provide oversight to the closing of the contract for construction.