- Provide plan and cost analysis.
- Observe the construction work and establish its level of completion.
- Assess general conformance with the lender’s understanding of the scope of work.
- Assess the adequacy of material and workmanship.
- Assess the management, organization, and safety measures at the project site.
- Verify conformance with the provisions of the construction loan agreement.
- Verify the adequacy of the contractor’s application for payment.
- Identify and report construction changes and potential and pending change orders.
- Identify and report status of stored materials and if requested, materials off site.
- Assess the conformance to the construction schedule.
- Verify quality control measures by applicable agencies, architect and engineers, material testing laboratories, and qualified construction inspectors.
- Assess adequacy of the labor on site, and possible union contract/strike hindrances.
- If requested, evaluate sufficiency of funds remaining to complete the project.
Review the plan and cost review report. Resolve contingency issues and periodically report on other noted issues.
- Review the draw request for form, format and content. Verify values against original budget and previous recommended disbursements.
- Review the construction loan agreement to extract the construction budget and completion date.
- Periodically refer to the construction loan agreement for disbursement procedures, change order procedures, and out of balance issues.
- Periodically refer to drawings and specifications and compare to those available on site to verify similarity or identify changes.
- Periodically check materials described in the plans and construction analysis against those encountered on site.
- Periodically review the provisions of the construction contract against observed conditions and procedures during site visits.
Project Site Visit
- Walk-around visual observation of the entire project.
- Observation of the specific equipment, fixtures, and systems where funds are being requested in the draw. This may be done on an appropriate sample basis on large projects.
- Verification of appropriate testing and inspection for work.
- Recording of deficiencies.
- Consideration of the general conformance with contract plans and specifications.
- Consideration of the general adequacy of material and workmanship.
- Consideration of the quality of the management, organization, and safety measures at construction site.