Before Construction Starts and During
For equity or debt investors in new development projects, discovering and resolving potential problems, errors or omissions that could result in cost overruns, project delays or potential litigation is a high priority. LCI’s Preconstruction Services are designed to provide our clients with the information necessary to make a well-informed decision regarding the potential risks of a project LCI will prepare a report which includes a comprehensive review and analysis of construction project information, documentation and budget, which outlines various factors that may impact construction cost and schedule. The report consists of the Document Review and the Cost Review of the contractors proposed budget.
The document review includes an independent evaluation of the plans and specifications for completeness, appropriateness and accuracy. Documents to be reviewed can consist of the following:
The cost review includes an evaluation of the proposed budget with an in-depth analysis of the construction budget and contingency to complete the proposed development within the project schedule timeline. Documents to be reviewed include the following:
Construction project schedule delays, unapproved materials substitutions, and cost overruns can result in a delayed return on investment, a potentially less valuable/desirable asset, and budgetary shortfalls which may require the outlay of significant additional capital. LCI’s construction experts perform periodic construction progress monitoring visits to ensure that the project is on schedule, in conformance with approved plans/specifications, the funding disbursement requests are appropriate for work completed in place, and that the project budget includes sufficient funds to complete.
LCI provides an unbiased assessment of the work in progress for both Lenders and Owners (independent of the general contractor and design professionals) and makes recommendations. These construction loan monitoring services can be tailored to meet the specific needs and requirements of each client, and can be provided on projects at the preconstruction phase or those currently under construction. LCI can provide these services on a nationwide basis.