NEW CONSTRUCTION & MONTHLY PROGRESS INSPECTIONS
As part of Pan Western Corporation full services of consulting, PWC offers through reviews of architectural drawings and commentary for all types of new construction. In addition to these services, PWC can provide a monthly observation visit(s) to assist in verifying contractor and / or sub-contractor progress. This can be performed incrementally or throughout the entire job.
Identify Potential Problems
- Over advancement of funds
- Poor quality workmanship
- Non-compliance with plans and specifications.
As part of our scope of services we perform the following in order to mitigate the risk associated with the loan.
- Front-End Analysis is performed on submitted plans and specifications to evaluate if they conform to generally accepted construction practices and if the proposed project’s hard cost budget is sufficient for the construction of the project under normal conditions.
- Monthly site observations are conducted in order to verify the completed work and identify potential problems.
- Written reports are submitted to the Lender and / or Investor with included comments in regards to the scope of work that encompasses the project, the condition of general activities at the construction site, and the status of any pending change orders that may affect the final outcome of the project.
- If material is stored at the site or at another location, PWC will notify the lender and schedule an inspection. Photographs and narratives are used to articulate the work in progress. We strive to evaluate real site progress with scheduled progress and advice as to its impact on the anticipated completion date and overall project costs at final completion.
Construction Document Review
The initial review process commences with an overall review of the construction documents for general conformity with accepted construction practices. The review provides a general description of the site, proposed on and off-site improvements and building(s). The plan and specifications review is generally organized as follows and includes a narrative of the work required, comments regarding completeness of detailing and clarity of the work, as well as noted or potential conflicts. In addition to the project drawings, the document review typically includes zoning verification, Owner / Contractor Agreements, geo technical reports, “will serve” agreements, development agreements, Owner /AE Agreements and construction schedule.
Civil /Site – including, topographic features, flood plain identification, wet and dry utilities, vehicular & pedestrian access provisions, geo technical considerations, storm water management systems, horizontal controls, zoning stipulations, parking, site accessibility provisions, site lighting, landscaping, and hard scaping. This section would also incorporate a review and discussion of offsite related improvements.
Architectural – including identification of building codes, general conformance with applicable codes, verification of building size, description of interior and exterior finishes, fenestration systems, fire separation and life safety related provisions, handicapped accessibility provisions, vertical movement provisions, roofing and waterproofing systems. The review can also incorporate an evaluation of LEED certification features and materials.
Structural – includes review of design criteria, foundations systems and conformity with geotechnical findings and recommendations, description of framing systems, deferred submittal requirements and general coordination with other disciplines.
Vertical Movement – includes a discussion of type and number of elevators and escalators provided and application to building type.
Mechanical & Electrical – includes review of proposed basic heating, ventilation and air conditioning systems, life safety provisions including stair and floor pressurization systems if applicable, sanitary, domestic, and fire water delivery and distribution systems, fire alarm systems, emergency power systems and review of equipment schedules and equipment.
Hard Cost Budget Review
An analysis of the hard cost construction budget is performed to address the sufficiency of the proposed budget. The project cost is evaluated on an overall unit or square foot cost basis as well as a system by system basis in which the cost distribution is analyzed for consistency with proven cost models. PWC has access to a wealth of historical cost data developed from firsthand experiences and from successfully completed projects located nationwide. Costing information is also utilized from national publications such as the R.S. Means Company.
The budget review includes a review of contract agreements, for consistency with the budget including:
- Value engineering exceptions
- Analysis of site related costs
- General conditions
- Overhead fee and building costs review
The report identifies potential problem areas
- Significant document omissions
- Un-Realistic hard cost budgets
- Susceptibility to change orders
- Ill-conceived schedules before construction begins.
The report provides comments and recommendations that enable the Lender to make an informed decision on the proposed project while addressing areas of concern.
Site observations are generally performed monthly, in order to evaluate the quality and progress of construction for payment purposes and substantial compliance with the submitted plans and specifications. In addition, an opinion is offered regarding the sufficiency of remaining hard cost funds to complete construction. PWC evaluates real progress with scheduled progress and advises as to its impact on the anticipated completion date and project cost at completion.
PWC’s function as a representative of the Lender and/or Investor is to reduce the exposure to potential hazards of construction lending, such as over advancement of funds, sub-standard workmanship and non-compliance with plans and specifications. As a way to identify the sufficiency of the requested loan proceeds to be disbursed, the General Contractor’s AIA payment application is reviewed and compared to the actual work observed.
Written reports are submitted with color photos after each site observation for the purpose of verifying the completed work and identifying potential problem areas. In addition, PWC comments as to the status of change orders, stored building materials and general activities at the construction site. Protocol arrangements for funding are designed primarily to accommodate the Lender requirements.