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| Project One Integrated Services assists banks and lending institutions with various tasks as it relates to commercial construction financing. These tasks include (1) The Initial Review and Monthly Project Status Updates, (2) Project Workouts, (3) Construction Risk Management consulting and recommendations for projects requiring assistance. |
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Initial
Review and Monthly Project Status Updates As construction projects continue to grow in scope, complexity and cost, lenders must make informed decisions on which projects to fund understanding the market conditions, timing and specific needs of each project. At the same time, the marketplace is forcing borrowers to construct facilities quicker than ever before. This often results in lenders being asked to make decisions based on preliminary or incomplete information. Project One Integrated Services will work with you early in the approval process to help you understand the construction factors that affect risk. We will base our review on the clarity of design coupled with the reasonableness of projected costs, complexity of the building type and anticipated construction durations. As the future economy is uncertain, it is more important than ever
that lenders properly assess risk. Project One Integrated Services
will provide objective information in the form of scope, budget
and schedule analysis based on over 30 years of construction experience.
Additionally, we will inform you of design documents, contract language
or aggressive budgets that may result in excessive change order
requests. During construction we will provide regularly scheduled
job site tours to review the progress of work and conformance to
schedule. Based on these reviews we will evaluate the accuracy of
monthly draw requests and payment disbursements. |
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Project
One Integrated Services will: |
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During the lenders final
loan approval process, conduct a detailed budget and scope review
with the borrower, designers and general contractor to determine completeness
of the budget. Through this collaborative review we will be able to
understand the extent of the details and effort by the borrower in
developing the total project cost. This effort is the most effective
approach for identifying potential risk at this early stage of a project.
The report that follows this review, will allow the lender the knowledge
to make the most informed decision on financing the project. |
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A review of the soft costs portion
of the budget will be done to flag any apparent risk issues.
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Review contract language between the
borrower/designers and the borrower/general contractor. We will identify
risk factors and make recommendations for revisions as appropriate. |
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Review change requests for accuracy
and completeness.
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Review and make recommendations on
monthly construction payment disbursements based on monthly field
observations and attending periodic Owner/Designer/Contractor progress
meetings as requested by the Client.
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Project
Workouts As with most lenders, eventually there will be a project that comes back to them at some stage of the process for one reason or another. When this occurs, it puts the lender in a position of developer, which is not familiar territory for most lenders. Project One can provide invaluable information and assistance to lenders caught in this situation. |
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| Project
One Integrated Services will: |
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Assess the current status of construction and identify
the scope of work, which remains to be completed. We will analyze
the current status of the General Contractor and their subcontractors
in relation to contracts, change orders, schedule, labor and overall
ability to complete the work. Upon analyzing this information, Project
One will provide recommendations to the lender regarding the best
approach for completing the project from a construction perspective. |
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Assess the financial status of the project. Through
this review, in addition to understanding the status of item 1 above,
Project One can determine if the loan can remain in balance and/or
provide recommendations to the lender to help minimize the risk of
items over-budget. We can also review the impacts to accumulated interest
in relation to schedule delays.
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Manage the design and construction activities in
the field on behalf of the lender in order to complete the project.
Provide the management, coordination, tracking tools, schedules, construction
contract expertise, project close-out, and general oversight as an
extension of the lender/owner.
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If the lender chooses to hire an outside developer to take over the project, Project One can create, prepare and implement the selection process, help negotiate contracts and assist you in managing the risk. | |||
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Construction
Risk Management Lenders from time to time need the information provided by a Construction Risk Management consultant to analyze a project that may not necessarily be in trouble currently but may have signs that it may be moving in that direction. As with any profession, there are red flags that warn of existing problems or ones that are imminent. Project One can analyze an entire project or a specific issue to identify the risk to a lender. The construction expertise provided by Project One can help provide critical information to a lender to help impact the projects overall success. Providing recommendations early can provide the lender with the opportunity to take potential disaster situations and turn them into positive outcomes. |
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| Project One Integrated
Services - We will create a customized path to get you there. For
more information call us at: (303)
771-0396 |
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