A Project and Budget Review (PBR) is a limited scope report, typically conducted prior to the closing of a construction loan, that reviews a subset of items that are reviewed in a Document and Cost Review. The items reviewed can include the Budget, Schedule, Drawings and Specifications, Construction Contract, and any other document(s) related to budget and scope. The PBR can be considered a streamlined review that looks for alignment of the three pillars of any construction project: the budget, the scope, and the schedule. The PBR is best used for small projects (ex: under $1 million), small scopes (ex: like a tenant fit out), projects with limited documentation, and for other scenarios listed below.
Partner conducts a Project and Budget Review as a third party to a construction project and analyzes each line item of a proposed budget to confirm the values submitted are reasonable. We can also look at any approved or potential changes to a budget created by scope changes, design modifications, value engineering, or force majeure.
It ensures that the developer or General contractor submitting the budget are charging realistic rates considering the construction schedule and that the lender or investor are on the same financial page.