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Project Quality Assurance

Project Monitoring Services

ProjectQA provides independent, professional Project Monitoring services to lenders that make loans for construction projects. These Project Monitoring services are sometimes referred to as “due diligence” or "inspecting architect" and generally consist of two components:

  1. Pre-construction Document Review and Budget Analysis
  2. On-site Observations and Reporting during construction

Pre-construction Document Review and Budget Analysis

Prior to construction many lenders require an independent review of project documents by an independent consultant to help them decide whether to make the loan.

A ProjectQA Document Review report provides the lender with an independent opinion of the adequacy of the design and other construction documents to successfully complete the project as it is understood by the lender and the borrower. Not all lenders request a Document Review prior to construction and instead rely only on periodic on-site inspections. We believe Document Reviews are most effective if performed prior to loan approval. A Document Review consists of an analysis of all documents necessary to successfully complete the project. The list of project documents is project-specific, but typically include the following:

The level of detail and completeness of project documents varies widely from one project to another. All documents requested by the lender are not always provided. The reviewer must have the experience and technical knowledge to judge the adequacy of the documents for each project. In some cases ProjectQA will correspond with the designer, owner, contractor, or others for additional information. ProjectQA considers the minimum acceptable list of documents will include drawings, schedule of values, schedule, and prime agreements/contracts.

On-Site Observations/Reporting

During construction lenders often require an independent review of the Payment Application and the status of the project, including a site observation, to verify satisfactory progress prior to disbursing funds.
ProjectQA’s on-site observation services provide input to the lender on this important question:

Should the lender release the current funding requested by the borrower at this point in construction?

On-Site observations are typically requested by a lender prior to making progress payments. ProjectQA compares observed progress with that stated in the payment request submittal.  Observed progress includes a thorough assessment of the schedule, earned value, construction quality, and budget. ProjectQA’s unique, proprietary method called PAARsm includes the following actions and reviews for each On-Site Observation/Report:

  1. ProjectQA receives a payment request package from the lender, the contractor, or the owner.
  2. The on-site observation is scheduled by ProjectQA with a ProjectQA Alliance Partner.
  3. The ProjectQA analyst reviews the payment application package and communicates with and transfers the project site workbook to the Alliance Partner.
  4. ProjectQA’s Alliance Partner observes the site, photographs important project features, completes the workbook, and transmits the information back to the ProjectQA analyst.
  5. The ProjectQA analyst evaluates the observation workbook, confers with the ProjectQA Alliance Partner and completes a comprehensive report to the lender, which includes recommendations with respect to payment and/or recommended corrective actions.

We believe that a valuable analysis and report should be performed by experts in the process of design and construction. Most importantly, due in part to the time constraints placed on document reviews and progress inspections, we believe the analyst must be trained to recognize events and sequences that can cause the project to fail or increase the risk of project failure.

ProjectQA’s unique, proprietary method, called PAARsm (Preparation, Acquisition, Analysis, Reporting) was developed by ProjectQA to satisfy these needs. PAARsm is based on adaptations of concepts, methods, and procedures used in the nuclear power industry and NASA to identify project failure modes, assess their likelihood of occurrence, and evaluate their consequences. PAARsm provides the means to focus our efforts on the aspects of projects that are most likely to cause project failure and/or adversely impact the lender.

For additional information about PAARsm, please click this link.