Construction – Lender Third Party Review

For lenders looking for third party draw review and reporting, the modified construction management scope includes:

• BC will conduct a review of the proposed plans and the general contractor agreement with a focus on helping the client understand the documents as well as identify any items of concern.
• Per Draw Construction Monitoring and Observation
  1. Attend one (1) monthly contractor draw request meeting and provide a funding recommendation – hard cost only.
  2. Perform physical observations once per month to quantify work in place on the draw request
  3. Review of the contractor cost breakdown and project documents for the purpose of determining what activities have been completed and should be on a draw request.
  4. Request and collect lien releases provided by the General Contractor and other billing documentation that may be required by the Lender for the General Contractor but not including subcontractors.
  5. Provide a simple written memo/report verifying:
     • The Project’s approximate percentage of completion and a general description of the construction progress
     • Items of concern observed and outstanding major action items
     • Provide an overview of percentages completed and remaining cost to complete; discussing items of concern regarding percentages either over or under valued.
     • Review the contractor and owner’s Change Order Logs and relay any concerns.
     • Provide opinion on the adequacy of the budget and contingency in relation to the ability to complete the project.
     • If information is readily available, provide a recap of contingency use to date for both the General Contractor’s and Owner’s contingency funds
     • Progress photos (minimal)