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Document & Cost Review

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.

Document & Cost Review, also referred to as pre-construction document and cost analysis, involves a comprehensive review of the project’s budget projections, schedule of values, construction team qualifications, scope of work, contractual agreements, design plans, specifications, timelines, and material selections.

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What's Involved

An independent document and cost review can help to mitigate these risks by evaluating:

  • Overall scope of the proposed work
  • Conformance of the scope of work with building permit and zoning approvals
  • Completeness and adequacy of plans, specifications, contracts, and other construction documents
  • Adequacy of the overall budget
  • Distribution of costs included in the line item construction budget
  • Proposed construction schedule

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.

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