Construction Monitoring and
Funding Disbursement Reports
During construction, the proper flow of funds to cover the costs of construction is critical to the success of the project. Advising our clients on the appropriate disbursement of funds for progress payments to the General Contractor is a standard part of our services. This independent loan consulting and draw request review is typically performed on a monthly basis and includes the following:
- A Trained Professional will visit to the Construction Site to analyze the funds requested on the Owner’s and Contractor’s Payment Applications versus the actual work in place.
- A computer analysis of the Contractor's Application for Payment and Continuation
Sheet will be performed to track:
- Percentage of Completion of each item
- Calculation and Transcription Errors
- Budget Revisions or Corrections
- Change Orders to the Contract
- Proper Accounting of Retainage as well as Revisions to and the Release of Retained Funds
- On-site and Off-site Stored Materials and review of the appropriate paperwork regarding the proper storage of materials
- Proper Funding to Subcontractors and Suppliers
- Required Signatures, Approvals, and
Backup documentation - Verification of the Adequacy of Funds Available to
Complete the Work - Review and Analysis of Lien Waivers and Releases
- Change Orders will be reviewed to ensure proper execution into the Contracts and Budgets. Additionally we will identify what scopes of work have been modified and address the costs associated with the change in work. We will make sure that all parties properly execute the documentation.
- We will review the scheduling of the project in regards to the Actual work in place. Completion Dates as well as any revisions to the Completion date will be verified throughout the construction of the project. Bar Charts, Pert Charts and CPM schedules will be reviewed in order to summarize the Critical Path of the project. We will track and address any potential or actual Liquidated Damages that incur.
- We will look for any evidence of Front End Loading.
- We will review Materials Testing reports and provide notification of any materials that do not meet specifications.
- A full written Report of our findings will be provided including:
- An Executive summary that details our current recommendation for funding
- Discussion of any significant issues
- Photographs of the Material Stored and the Work that has been completed and is ongoing during our visit
- Written Observations of our site visit
- Report Copies sent to Owner, Contractor, Permanent Lender or other interested parties
Construction Lending Advisors
817-797-5898
information@cl-advisors.com
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