CONSTRUCTION LOAN MONITORING & DUE DILIGENCE

Let us be your eyes and ears to help on your next project.

PROPERTY CONDITION REPORTS

An assessment of all observable site and building components, thus helping to determine both the current condition of all components and categorize future capital improvement estimates into critical, immediate, short-term, and long-term estimations. At your request, this report can be written in accordance with ASTM, HUD Mark to Market, Freddie Mac, or other specific guidelines.

Site work (topography, storm water drainage, access, egress, paving, curbing, parking, flatwork, landscaping, recreational facilities)
Utilities (water, electricity, natural gas, sanitary sewer, storm sewer, special utility systems, on-site generation)
Structural Frame and Building Envelope (foundation, building frame, facades, parapets, water penetration issues, windows, skylights)
Roofing (material, condition, drainage, flashing, coping, issues)
Plumbing (age, piping supply, drain/waste/vent, domestic water production, fixtures)
HVAC (heating plant, fuel sources, storage tanks, pumps, distribution systems, controls, rooftop units, issues)
Electric System (building power, fixtures, emergency power, emergency fixtures, fire alarm, GFCI, issues)
Elevators – (number of cabs, controls, equipment)
Fire Safety (system types, smoke detection, alarm)
Apartment and common area interiors (finishes, conditions, issues)
Handicapped accessibility

REVIEW OF PLANS AND SPECIFICATIONS

Prepared prior to the start of new construction or renovation, this report is based upon a visit to the site(s) and includes a comprehensive review of all available plans, direct cost construction breakdown, specifications, building department applications/permits, scopes of work, technical reports, project contracts. Initial site visits and our technical reports are designed to help identify any issues that should be considered prior to closing.

Project Scope and Key Issues
Site Comments
Architectural Comments
Structural Comments
Building Systems Comments
Other Issues Affecting the Construction
Specifications Comments
Construction Schedule
Budget Review
Evaluation of Contracts

SITE OBSERVATION REPORTS

Generally issued monthly, this report includes a complete site and building observation with a focus on a monthly requisition to the lender. It includes the project data, site conditions, site safety, funding recommendation, change orders, contingency funding, retainage, potential delays/overruns, quality of construction, permits, violations, and schedule/estimated completion.

We visit the site in conjunction with Applications for Payment or as directed by the Bank to review the progress of the work and report on the following:

Progress of the work and whether the payments requested fairly represent the amount of work completed on the project. In addition, review amount shown as necessary to complete the project.
Quality of construction and standard of workmanship.
Compliance with the approved plans and specifications.
Anticipated labor stoppage and material shortages that could adversely affect the completion of the project.
Review change orders.