CONSTRUCTION LOAN MONITORING

Construction leaders and equity participants, who provide funds to finance project construction, are typically interested in construction loan monitoring services. These services permit the lender or partner to make an informed judgment on the merits of the project before any funds are committed. We also provide a periodic update on the statuses of construction, project costs and potential overruns, potential project delays, contractor payments and change order claims.

CMI can provide construction loan monitoring services at two phases: the Preliminary Project Review and the Periodic Project Inspection Review. During the Preliminary Project Review, CMI will:

§     Examine and analyze contract documents

§     Prepare trade cost breakdown and compare them to the contractor’s payment schedule

§     Analyze the client’s schedule and cash flow requirements

§     Review and comment on general contract and subcontract agreements, architect

      and or engineer contracts and major purchase orders

§     Check for conformity between contract documents and the building loan agreement

As part of the periodic project review process, CMI will:

§     Report on construction progress since the previous reporting period

§     Plot actual progress versus the construction schedule

§     Review and recommend monthly payment applications

§     Tabulate subcontractor buyouts versus budget values

§     Provide the lender with contract status

§     Document progress with project photographs

§     Review all controlled inspection reports

§     Analyze claims and report findings

These construction loan monitoring/inspection services can be tailored to meet the specific needs and requirements of each individual client and can be provided on projects at the preconstruction phase or those currently under construction. CMI can provide these services on a nationwide basis.