Construction loan underwriting is a detailed and time-consuming process. It is often beneficial and cost-effective to establish the basic feasibility of a proposed project. We offer the following:

• • Preliminary Project Assessment – a review of preliminary information to discern the basic feasibility of a proposed project.

• • Property Condition Assessment – an evaluation of a property’s physical deficiencies and deferred maintenance, a check for violations on record with regulatory agencies, an assessment of the property’s maintenance program and recommendations for repair and replacement reserve budgets.

• • Construction Monitoring – site inspection, on-going review of construction documentation, the contractors requisition and the borrower/developer’s loan disbursement request.

• • Plan & Cost Review–a comprehensive review of a project’s construction documentation and development team.

• • Escrow Release Report – often a portion of the loan proceeds are held in escrow for a period of time pending completion of certain repairs by the owner. An inspection is performed prior to the release of funds to ensure that all repairs required by the lender have been completed.

• • Loan Servicing Inspection Report – prudent lenders require real estate held as collateral for loans be inspected annually as part of the lender’s servicing of its commercial real estate portfolio. This report documents occupancy levels, ownership’s on-going property maintenance and regulatory inspections (elevators, boilers, lift/fire safety, tenant CO’s).

• • Hazard Insurance Loss Payee Report – prior to the lender releasing insurance proceeds as mortgage/loss payee, an inspection is performed to confirm the property’s complete rehabilitation to its previous condition.

Project Control Associates, Inc. provides consulting services for non-performing real estate loans and owned real estate (OREO) assets. Working with the lender and their representatives, we provide analysis essential to the lender’s critical decision making. We can formulate and implement “protect and preserve measures” needed to stabilize a stalled project, maintain development rights and preserve asset value. We can assist property management efforts by coordinating necessary repairs and regulatory inspections. In addition, we can provide salient information that assists the lender with repositioning and selling OREO assets. We can peer review construction and environmental reports and provide an unbiased, authoritative second opinion.

• • Construction Management
  • Cost-To-Complete Estimates
  • Contingent Liability Analysis
  • Peer Review of Third-Party Reports
  • Alternative Feasability Analysis

• • Construction Dispute and Resolution Analysis
  • Discovery
  • Mediation
  • Arbitration
  • Owner’s Representative