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Document and Cost Reviews

Manage construction risks right from the start.

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 end product can significantly impact the probability of success.

An independent document and cost review, also referred to as pre-construction document and cost analysis, can help to mitigate these risks by evaluation of:

  • 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

In order to complete the assessment, the following documents are typically needed:

  • Civil, architectural and structural plans and specifications
  • Construction contract, where applicable
  • Major subcontracts
  • A detailed breakdown of construction costs including permit and A&E fees
  • The proposed construction schedule, and
  • Geotechnical Investigations

Review of the following documents may also be completed, if desired.

  • Civil, architectural and structural plans and specifications
  • Contractor’s Certificate of Insurance & Builders Risk Insurance
  • Copies of available permits, zoning approvals and utility letters
  • Construction bond, if applicable
  • Phase I Environmental Site Assessment
  • Wetlands assessment
  • Environmental Impact Report

After a Document and Cost Review, further Construction Progress Monitoring can enhance the management of construction risks.