The following is a typical list of services provided to the Lender when monitoring a project:

 

•  Review of plans, specifications and contracts for scope and completeness. 

 

•  Review the Borrower's construction time schedule with a view to determining whether it is realistic.

 

•  Review all cost items which are, or ought to be included in the Project budget, with a view to determining that such  allowances are    reasonable, adequate and complete.

 

•  Review the Borrower's cash flow projections and revise, if necessary.

 

•  Review all change orders in respect to contracted work to ensure the adequacy of the scope and cost of changes.

 

•  Review insurance policies to ensure that all risks are adequately covered.

 

•  Review building permits, the lender's commitment, development agreements, and bonding documentation with a view to ensuring to  the fullest reasonable extent the adequacy of the budget.

 

•  Prepare an initial report to the lender covering:

        a) The project budget as agreed with the Borrower and approved by the lender.

        b) The construction budget - based on a detailed construction estimate, non-arm's-length general contract, or based on a fixed                    price contract.

        c) An updated construction time schedule and projected cash flow.

        d) Recommendations on such other matters as may become evident during discussions with the Borrower, the lender, the architect               and engineers. 

               

•  Prepare ongoing monthly progress reports.