At Prairie River Engineering & Inspection, we are skilled at using our education, training, and expertise to provide valuable project review and monitoring services that result in helping your organization manage the inherit risk of lending for construction projects. Prior to lending, we can help you to avoid problematic projects by providing a thorough review to identify potential project pitfalls. Once construction begins, we can supply active monitoring services so that you can knowledgeably adapt to changing project circumstances. In the event of a distressed project, we can help you understand the options for recovery so that the project gets back on track.
The following are services that we offer:
- Due-diligence review of project documents, including:
- Construction Drawings
- Third-party studies
- Contracts with contractor and design consultants
- Cost budgets
- Construction Schedules
- Physical Needs Assessment for existing buildings
- Evaluation of Project Permitting Requirements
- Review of contractor or design consultant qualifications
- Progress monitoring of construction activities to ensure compliance to project requirements
- Verification of milestone completion for disbursement of funds
- Consulting for distressed projects:
- Loss of contractor or key design consultants
- Lack of performance by contractor
- Establish actual situation of the project
- Create roadmap for project recovery
Nearly all we see in the built environment was once created through a construction project. Construction projects are numerous and varied and encompass everything from the renovation of existing houses and buildings to the new construction of houses, apartments, commercial buildings, hotels, manufacturing facilities, warehouses and infrastructure for energy, water and telecom, to name a few. Construction projects can be simple endeavors that require thousands of dollars and weeks to complete or can be complex programs spanning years and costing multiple millions of dollars. Though great differences exist, one common factor between projects is the need for outside financing due often to high overall project costs. Therefore, construction lending is often an essential component to building projects of all varieties and represents an opportunity for lending institutions.
Lenders are experienced in analyzing the financial underpinnings of projects to make prudent lending decisions. However, a key assumption in the financial analysis is the successful delivery of the construction project. Unfortunately, project delivery according to plan is not assured as construction projects can go wrong for a multitude of reasons. In the event of problems, many projects exceed the planned schedule and budget. In the worst cases, projects can fail to be delivered entirely. Construction projects that fail pose a large financial risk to lending institutions by jeopardizing the likelihood of successful loan repayment.
Contact us today to learn how we can be a valued partner to your construction lending team.