In the event of a construction project shutdown, agreeing on and documenting the current status of construction is important in order to minimize impacts on the property. In addition to knowing where a project stands physically, knowing the state of design, entitlement, procurement, and the financial state of the project will be beneficial if/when a project restarts and if/when change order requests materialize. A Construction Status Review involves a third-party observation of the property, a review of relevant documentation, and interviews with key stakeholders. The Construction Status Review can be tailored to meet your needs and can range from simply documenting the construction status to very detailed and in-depth reviews that include such items as the collection and review of contracts, subcontracts, lien releases, plans, specifications, submittals, inventory of materials stored on- and off-site, project weatherization and more.
A Construction Status Review includes the following services:
Anytime a project shuts down, it is a good time to seek agreement on payment(s) due for work completed to date. In some cases, contractors may aggressively estimate the value of Work-in-Place in order to generate working capital. Carefully vetting pay applications can be crucial in making sure payments don’t outpace the actual work performed.
During a construction status review, various aspects of the project are typically assessed, including progress against the project schedule, budget performance, quality of workmanship, compliance with contractual requirements, safety record, and any outstanding issues or risks.
The key objectives of a construction status review typically include assessing project progress and performance, identifying any deviations from the project plan, evaluating the effectiveness of risk management strategies, ensuring compliance with regulatory requirements, and communicating project status to stakeholders.
Formal Reviews: In-depth evaluations with detailed reports and presentations.
Informal Reviews: Shorter, more frequent check-ins to monitor progress.
Early identification and resolution of problems
Improved project control and decision-making
Enhanced communication and collaboration
Increased project success rates
While the reopening of construction projects and the economy in general is under discussion at Federal, state, and local levels, additional project shutdowns are likely in states where COVID-19 is still on the rise. For projects that have already been shut down, it’s a good idea to plan for the resumption of the work. Items that may impact the resumption of work include the manner and details of how the project was shut down and current factors such as the financial capacity of the owner/developer, general contractor, subcontractors, and suppliers. The qualifications and availability of personnel and workforce may also impact the resumption of the work.
Partner stands ready to assist in case of a project shutdown, a project re-start, or both.
