Request a proposal In the field. In the documents. On the record.Construction risk management
Independent site observations and draw review for lenders tracking work in place, requested funds, remaining cost, schedule, and change activity.
Request a proposalIn plain terms
Construction loan monitoring gives lenders and equity partners a recurring record of progress, payment requests, budget changes, and completion exposure. The field visit and document review must address the same reporting period; photographs alone do not explain whether the requested funding is supported.
Scope, requirements & reporting
Document visible work by trade, compare it with the reported percentage complete, and identify incomplete or defective work that could affect the draw. Note areas not accessible and work concealed before observation. A monitoring visit is not continuous supervision or a substitute for required code and special inspections.
Compare the application for payment with the schedule of values, prior certified amounts, retainage, change orders, contingency, and remaining commitments. Stored-material requests need supporting evidence of the materials, location, ownership, insurance, and lender-required protections. Off-site verification must be expressly arranged.
State the observation date, requested amount, recommended adjustments, unresolved information, progress and schedule concerns, and funds remaining to finish. Distinguish verified facts from contractor forecasts. The lender makes the funding decision under its loan documents.
Decisions supported
Is the requested advance supported by observed progress and documentation?
Is the remaining undisbursed balance reasonably aligned with the cost to complete?
Are schedule, contingency, change orders, or unresolved project issues creating additional risk?
What conditions or follow-up items should be addressed before or after funding?
Typical scope
The final scope follows the property, transaction, program, client requirements, and information available. Typical elements include:
Process
Review the approved budget, plans, contracts, schedule, prior funding, and reporting requirements.
Visit the site, document current conditions, and evaluate work completed since the prior observation.
Compare requested funding with observed progress, pay applications, stored materials, changes, and remaining balances.
Summarize progress, material risks, exceptions, and recommended follow-up for the lender’s review.
Common assignments
Recurring monitoring across the full construction cycle for new multifamily, mixed-use, commercial, and institutional projects.
Progress and cost review where existing conditions, phased work, or occupied spaces add complexity.
A consistent monitoring standard across multiple projects, borrowers, geographies, and internal lending teams.
Frequently asked
No. Deposits, stored materials, retainage, front-loaded values, and delayed billing can separate payment from physical progress. The report should reconcile those differences rather than equate dollars spent with work completed.
Not always. A shared assignment can address agreed lender and equity reporting needs, with reliance and distribution established in advance. Different funding structures may still require separate analyses.
That depends on the loan documents and required evidence. A purchase order alone does not prove delivery, ownership, appropriate storage, or insurance. Identify which checks are included before recommending payment.
The review typically connects the application for payment and supporting backup with observed work in place, stored materials, the approved budget, change activity, contingency, schedule, and the funds remaining to complete the project.
KOW provides an independent review and funding recommendation within the agreed scope. The lender retains its own authority under the loan documents and internal credit procedures.
Monthly observations are common, but the cadence can follow the draw schedule, project milestones, or a lender-specific monitoring program.
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