Construction lenders and equity participants (and other parties who finance construction projects) are often interested in construction loan monitoring services. These services permit the lender or partner to make an informed judgment on the merits of a project before any funds are committed. Beacon also provides periodic updates on the status of construction, project costs and potential overruns, potential project delays, contractor payments and change order claims.
Beacon provides construction loan monitoring services at two phases: the Preliminary Project Review, and the Periodic Project Inspection Review. During the Preliminary Project Review, Beacon 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/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, Beacon will:
- Report on construction progress
- Plot actual progress versus the target 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