Environmental Services Nationwide
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We assist lenders in managing the construction loan process by providing an experienced third- party review of construction documents by experienced engineers and construction professionals. Prior to breaking ground, our reviews determine if construction budgets are adequate for projects to be completed to ensure lenders avoid construction delays and cost overruns. During the construction process, the monthly inspections confirm the loan is paying only for completed construction activities. An experienced AKT professional helps the lender keep their projects on track from loan underwriting through project closeout which ensures successful project outcomes.
Construction Analysis provides a degree of validation and certainty for the lender that the project is accurately estimated and can be constructed within the proposed budget and schedule. Additionally, numerous additional factors can influence the successful completion of a construction project that by themselves might appear to be inconsequential; however, given certain other factors in relationship to the specific project, those factors can cause delays and large change orders that change the construction loans financial viability. An incomplete geotechnical report can alter a proposed foundation system design and substantially increase the construction cost or a substandard Phase I ESA can miss the presence of environmental conditions that cause delays and excessive change orders. A construction analysis done by the lender can raise questions like this and others before it is too late. The Construction Analysis ultimately provides significant value in predicting the potential for a successful outcome to any construction project.
AKT Peerless performs periodic site inspections of ongoing construction projects to ensure compliance with the loan documents and project specifications. As part of the site inspection process, AKT Peerless evaluates construction progress and certifies it has been achieved to the point indicated on the Application Payment issued by the general contractor.
We perform a complete review of project construction documents including change orders, material testing reports, lien waivers, and architect’s reports. In addition, our inspection process includes a review of the project’s safety conditions, quality of construction, stored materials and housekeeping.
Our comprehensive reports provide the lender with a clear understanding of the construction project’s performance and highlights any potential pitfalls that may be impacting a project in real time. The information gathered by AKT Peerless engineers and professionals can then be used by lenders to navigate the administration and disbursement of construction loans with confidence and assurance.
A Property Condition Assessment consists of an evaluation of the physical aspects of real estate and how its condition may affect the soundness of the clients’ financial decisions over time. In performing a Property Condition Assessment, we complete a site inspection to observe the property and improvements and evaluate their apparent physical condition. The assessment includes a review of major property systems.
In addition to the walkthrough inspection, we also review available documentation such as maintenance records and building plans, conduct interviews with personnel associated with the project’s operation, and review municipal records at the local building and fire departments to ascertain the nature of any outstanding violations. Using the information obtained from these sources, we then evaluate the cost of repairs, replacements and significant maintenance items and provides the client with a cost estimate for the immediate needs at the subject property, as well as the ongoing capital reserves the property will require throughout a loan term. This information assists the client in their decision-making process regarding loan financing and operating costs, as well as with portfolio management or acquisitions.
Cost estimates for troubled and partially completed commercial construction projects.
The Cost to Complete Analysis is performed by AKT Peerless engineers to assess projects that become interrupted midstream in their construction, either by contractor non-performance or financial setbacks. The report is utilized by lenders in workout scenarios and foreclosure proceedings.
In completing the analysis, AKT Peerless conducts a thorough site inspection of partially constructed projects to ascertain their extent of construction. The site inspection is then supplemented by reviewing available project plans and specifications, as well as discussions with municipal building officials. Together, AKT Peerless utilizes the information gained from these resources to develop an accurate cost estimate for completion of the project.