Consider us an extension of your team. We're here not only to support you make smart, strategic decisions about your investment but also to ensure the planning and execution of your project meets all requirements, takes advantage of any incentives available, and completes every stage of development without any surprises.
We provide following services to our clients which can be tailored to your actual needs:
Construction Loan Monitoring / Fund Monitoring
Change Order Control
Risk Mitigation And Remediation
CONSTRUCTION LOAN MONITORING
Construction Loan Monitoring helps protect banks, lenders, and financial institutions from the risks inherent in construction lending. Managing risk associated with loans requires the loaning body to constantly monitor the execution of the project and the utilisation of the budget by the developer.
Overfunding the incomplete work, funding projects plagued with complex problems or trades unpaid by the Contractor should be prevented before it is too late by means of inspection and examination by the experts.
Having many years of professional experience with the development process and the associated risks, we support institutions which provide financing. We help foreseeing the risks and we ensure not only that the contracting party receive the requisite funds timely and at the correct level but we also make sure the funds are being addressed to designated cost locations.
Monitoring services are being provided as described below in full or partially depending on the requirement of the Client:
- Initial Review
o A thorough assessment and analysis of the proposed CM contract, proposal and clarifications. This review will have a focus on reduction of risk, potential conflicts and increased clarity
o Budget analysis to validate if the current value is complete and realistic for the project.
o Review of the General Project Execution plan as understood by the Owner, Construction Firm and Architect
o Prepare trade cost breakdown and compare them to the contractor’s payment schedule
o Analyze the client’s schedule and critical path
o Analyze the cash flow plan and compare it with the schedule
o Check for conformity between contract documents and the building loan agreement
o Determination of Risks and Security Advice
Following documentation are examined thoroughly when conducting initial review:
o Development proposals
o Site and survey information and reports
o Development appraisal
o Cost plan, cash flow
o Statutory approvals and consents
o Programme information, procurement information
o Professional appointments and warranties
o Other available reports and any other relevant matters
- Services on the course of execution
o Budget Advise and Monitoring
* Comparison of physical completion to the value being billed
* Verify the total amount paid on the project, including reconciliation of the final budget with costs to date, subcontractor costs, and change orders
* Review the payroll costs for direct hire, cost plus, or time and material costs, including labour burden
* Review the rental rates and rental charges to assure that they are consistent with industry standards
o Plan and Cost Review in terms of Cost, Constructability and Contingencies
* Providing trending analysis for costs, changes, RFIs, schedule performance, and other metrics to help the lender understand the health of the project
o Progress and Schedule Monitoring
* Observe the construction work and determine percent complete
* Assess the conformity of material and workmanship
* Verify the adequacy of the contractor’s application for payment
* Identify and report construction changes and potential and pending change orders
* Determination of stored and off-site materials (if it is the case)
* Assess and report progress compliance with the construction schedule
* Verify quality control measures by applicable agencies, architect and engineers, material testing laboratories, and qualified construction inspectors
* Assess adequacy of the resources on site and address any potential risk of deviation from schedule due to missing labor/material/equipment
A prospective tenant, an investor or a bank providing development finance should be able to protect their commercial interest in a development even though they might not have an immediate or direct control over the construction phase. Project monitoring by an expert enables them to be aware of the risks timely, giving them the opportunity to take measures before formation of costly or irreversible situations.
Our experience spans superstructure investment classes and our advisory range varies from smaller projects such as retail units or larger complex developments such as residential buildings, malls, logistic centres, storage buildings and office buildings.
Our bank clients require us to monitor whole aspects of any development which could impair with their ability to recover their valuable capital. We support banks to make informed decisions by assessing risks and developing strategies for mitigation.
For tenants pre-leasing a development, properly completed building of high quality and performing within defined standards and the requirements is vital. Project needs to be delivered on time otherwise business continuity can be affected. We are providing expert insight for you to ensure the building meets exacting requirements at handover.
Acquiring new property for investors through direct purchase or by fully funding new developments comes with great risks. The developer’s available resources and skills in addition to the involvement of pre-let tenants add extra complexity to the expected risks of construction. Through effective monitoring, investors receive essential safeguards to their immediate short-term commercial exposure and sustain their long-term interest.
Through a complete site visit, we complete a status inspection evaluating the completion of the project based on the construction budget.
Our inspections include percentage of completion on the project overall, as well as visual evidence of completed works in the entire project. This status inspection is for those lenders who do not utilize our complete project monitoring services.
Throughout the building phase of a construction project, we represent the interests of our client. Monitoring the quality of the construction work constitutes one of our major activities. Within the agreed assignments the contract manager and quality supervisor monitor the contractual requirements between the client and the contractor and the quality of the process and the realised work. With a proactive approach, we help to prevent problems during the construction phase and enable the contractor to function with the desired efficiency. Close involvement and intensive monitoring of the construction process in practice lead to the best results.
Our core business is to make sure the building project is realised as specified, within the agreed limits of scope, cost, time and quality withing governing construction and health, safety and environment regulations. By clearly communicating on the critical factors of time, costs, scope and quality , the contract manager ensures that all agreements between the parties shall be fulfilled, including timely data provision.
Other parts of our work can be the design of the project organisation, to advise on additional work and payments, execute document management, prepare of periodic status reports and financial statements and the commissioning procedure.
CHANGE ORDER CONTROL
Construction projects will inevitably experience changes that will impact the scope, cost or schedule. An effective change order management makes the difference between a successful project and a delayed and over-budget project that ends up in a dispute.
Projects where a third-party construction consulting firm is engaged to assist with claims typically involve elements of ineffective change order management. Understanding key contractual requirements, planning and preparing for project changes, identifying project changes, notifying and substantiating project changes, designating a change order representative and negotiating and finalizing change orders in timely manner form key factors in change order control and management.
RISK MITIGATION AND MANAGEMENT
Construction financing is one of the riskiest, most complicated and sophisticated forms of lending, and experience matters. We guide investors and lenders through the complex process of construction financing, from pre- to post-construction. To minimize exposure, lenders must control and monitor the construction process, including the budget, completion, take-out failure and document compliance.
Analysis of project risks to effectively control and transfer where possible
Advice on risk retention and risk financing
Financial analysis for suitability of insurance markets