Construction Monitoring & Document Review

PRO2 provides single source monitoring and administrative services for both residential and commercial Projects virtually anywhere in the country.

The following summarizes our Loan and Investment Administration Program.

  • SCOPE AND LEVEL OF SERVICES
  • FEASIBILITY, DOCUMENT REVIEW, AND COST ANALYSIS
  • CONTRACTOR QUALIFICATION REVIEW
  • CONSTRUCTION MONITORING AND REVIEW
  • LONG-TERM FINANCING REVIEW
  • STANDARD FORM PREPARATION AND REVIEW
  • VOUCHER CONTROL AND DISBURSEMENT SERVICE

Scope and Level of Services:
The scope, level, and type of service PRO2 will provide can be customized according to complexity of the Project; individual needs, expertise, and available resources of the Client; and the detail or extent of the review required with fees varying accordingly. There are four basic levels of Service:

  • Single Family Residential: Small loan value single family residences.
  • Small Multi-Family Residential, Commercial, and Development: Small multi-family and large single family residential, commercial, and site development projects.
  • Multi-Family Residential, Commercial, and Development: Medium sized multi-family residential, commercial, and development Projects.
  • Large Scale Projects: Large loan value projects of any type.

Feasibility, Document Review, and Cost Analysis:
Review and analyze all or part of the following for content, completeness, overlap, clarity, adequacy, accuracy, validity, and potential claim issues; and compare with Industry Standard, National, and/or Historical information for projects similar type, scope, and location:

  • Plans, specifications, soils and environmental reports, and any other pertinent design documents.
  • Contracts, agreements, zoning and permit information, etc.
  • Project Budget.
  • Project Schedule.
  • Report on findings including any possible deficiencies and recommendations for corrective action.

Contractor Qualification Review:
Determine the Contractor’s capacity and ability to perform on the Project by reviewing the following:

  • Contractor’s financial capacity and experience.
  • Contractor’s payment history, customer and vendor references, and litigation record.
  • Contractor’s license, insurance, and bonding capacity and history.

Report on findings including any possible deficiencies and recommendations for corrective action.

Construction Monitoring and Review:
Conduct periodic on-site observations to assess status, progress, and quality of the work.
Review and analyze the following information for validity, regulatory approval, budget and schedule impact, and conformance with the Construction Loan Agreement: Design and documentation for the Project.

  • Progress Payment Applications.
  • Budget Revisions and Change Orders.
  • Progress documentation, including special inspection and test reports, governmental inspection reports, Schedule Updates, etc.
  • Final project close out documentation, including notice of completion, certificate of occupancy, punch list completion, final lien waiver submittals, etc.

Provide Initial, Progress, and Final Reports based on findings including any possible deficiencies and recommendations for corrective action.

Long-Term Financing Review:
This service is beneficial to Clients providing permanent financing on a construction Project.

  • Conduct an on-site observation to assess project completion and quality of the work.
  • Review of the Final project close out procedures and documentation, including notice of completion, certificate of occupancy, punch list, final lien waivers, operations and maintenance manuals, etc.

Report of findings including any possible deficiencies and recommendations for corrective action.

Standard Form Preparation and Review:
This service is beneficial to Contractors, Developers, Lenders, and Investors who are new to Construction Lending or who just want to improve their systems.

  • Review and/or establish and prepare the following to facilitate the process and reduce risk:Insurance requirements.
  • Standard Cost Breakdown forms.
  • Contractor Qualification forms.
  • Standard Payment Application, Architect Certification, and Lien waiver forms.
  • Project Close-Out forms.

Voucher Control and Disbursement Service:
This service is beneficial to Contractors, Developers, Owners, Lenders, and Investors who do not have the in-house capacity or who recognize the value, efficiency, and cost-effectiveness of outsourcing these services.

  • Establish and/or review disbursement policies and procedures as may be required including:Multi-party/joint checks.
  • Lien release procedures.
  • Maintain all account and disbursement accounting records.
  • Set up a trust account for the depositing of funds from the Lender and the issuance of payments.
  • Review all Payment Applications for the Project.
  • Provide or solicit on-site observations to determine validity of Payment Requests.
  • Receive approval from and/or provide recommendation to the Lender for Disbursement.
  • Cut and issue individual payee checks for the Project.
  • Oversee all related IRS 1099 reporting requirements, including collection from payees of W-9 forms and year-end IRS filings.