Construction projects pose unique risks in real estate investment because so many variables can affect the successful completion of the project. Inadequate plans, optimistic schedules and budgets, and even an incomplete understanding of the end product can significantly impact the probability of success.
An independent document and cost review can help to mitigate these risks by evaluation of:
In order to complete the assessment, the following documents are typically needed:
A review of the following documents may also be completed, if provided:
Following a Document and Cost Review, Construction Progress Monitoring can further enhance the management of construction risks.
Reviewing:
Project scope and alignment with permits.
Completeness of plans, specifications, and contracts.
Budget accuracy and cost distribution.
Construction schedule feasibility.
Document & Cost Review helps to identify errors, discrepancies, or potential issues early in the project, allowing for timely corrections and preventing costly delays or budget overruns later on.
Construction Progress Monitoring helps ensure that the project stays on schedule, identifies potential delays or issues early on, allows for timely adjustments to the construction plan, and improves overall project management and coordination.
Site visits to assess construction adherence to plans and schedule.
Reviewing contractor documentation (draw requests, pay applications).
Identifying potential delays or cost overruns.
