Construction Administration reduces the risks involved in the building and development industry. Lenders, Investors, and Real Estate professionals can take measures to protect themselves by proactively managing construction projects while they are occurring. Natura Architectural Consulting (NAC) specializes in Construction Loan and Progress Monitoring to help clients feel confident that construction projects are progressing as anticipated.

Monthly onsite inspections by an expert can assure the general contractor is building to the original plans and specifications and that billing is in accordance with the progress to date. The quality of construction is proven to be better with regular site inspections. It is best to have a neutral third party, like NAC, performing the construction administration to receive a fair and precise inspection.

There are many reasons to monitor progress of a construction project;

• Some general contractors will order all their materials in one shipment to take advantage of discounted pricing. Therefore, the contractor may request payment for all the materials in one payment application. In this case, the project (by billing percentage) will look as though it is further along than it is due to the amount of materials that are stored onsite. An onsite inspection can help reduce the risk of overpayment by the lender.

• Materials may be pre-purchased but stored off-site. Proper documentation of safe and dry off-site storage conditions and evidence of insurance on the stored materials is the owner’s best interest.

• Lenders and building owners need assurance that a construction project will not be “front-loaded” in terms of billing. It is perfectly acceptable for larger amounts of money to be billed in the initial months by the contractor for mobilization to the site and other beginning of project incurred costs. However, these costs need to be reviewed for accuracy to ensure excessive billing is not taking place. Therefore, it is important to implement a risk management system from the beginning of a project.

Construction loan and progress monitoring services include; regular inspections of the construction project, monitoring the project schedule, assessing change orders, investigating potential change orders, and reviewing lien waivers. The regularly scheduled meetings allow the inspector to report on what is happening on the site on a regular basis with short feedback loops to the client.

Contact NAC today to discuss risk management strategies to avert risk and avoid losses in your construction projects. Recognizing potential risks early in the construction process will result in cost savings and improve the overall quality of the project.