ProjectQA provides nationwide Project Monitoring services to lenders making loans for construction projects. These Project Monitoring services are sometimes referred to as “due diligence” or “inspecting architect” and generally consist of two components:
- Pre-construction Document Review and Cost Analysis report (DRV)
- On-site Observations and Reporting during construction
We can also provide packaged single family residence monitoring for larger scale home developments at cost effective rates and specified construction intervals. These are done on a per project basis; please contact us to discuss this service need.
Pre-construction Document Review and Cost Analysis report
Prior to closing the construction loan, many lenders hire us to perform an independent review of the project documents to help assess and identify the lenders risks.
A ProjectQA DRV report provides the lender with our 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. A DRV consists of a review and analysis of all the project documents necessary to successfully complete the project.
The level of detail and completeness of project documents varies widely from one project to another. ProjectQA’s team has the experience and technical knowledge necessary to judge the adequacy of the project documents for each project. In some cases, ProjectQA will correspond with the designer, owner, contractor, or others for additional information. Typically, at a minimum ProjectQA reviews the project drawings, geotechnical report, schedule of values, schedule, and prime agreements/contracts.
The cost analysis we perform is a detailed assessment of the adequacy of the project budget, construction costs. Our proprietary database includes completed project costs from across the country that provide our analysts with current budget comparisons.
On-Site Observations and Reporting
During construction, lenders hire us to perform an independent review of the payment application request and the status of the construction progress prior to disbursing funds.
On-site observations and reports are typically requested by a lender on a monthly basis during construction prior to making progress payments. ProjectQA compares observed progress at the project site with that reported percent complete in the payment request submittal. Observed progress includes an on-site walk through along with our thorough assessment of the current construction status. Our reports note our assessment along with identified or potential problems and recommended actions with regard to earned value, construction quality, schedule, change orders, and includes current site photographs.
By utilizing formal risk assessment methods, ProjectQA provides thorough analysis and recommendations to mitigate the lenders risk. We believe that a valuable analysis and report should be performed by licensed experts in design and construction, who are trained to recognize events and sequences that can cause or increase the risk of project failure. To do this, ProjectQA developed a unique, proprietary method, we call PAARsm, which is based on methods and procedures first used in the nuclear power industry and by NASA to identify project failure modes. It allows us to focus our efforts on the aspects of a project that are most likely to cause project failure or adversely impact the lender.