March 14 2020
Monitoring a commercial construction project is a much more comprehensive process than simply “checking the draw”.
Quality Control
- The construction inspector should always review updates to the project plans located onsite to document any major changes that may create additional costs or impact the value of the project.
- The building permits should be reviewed to ensure the contractor is passing municipal threshold inspections and is in good standing with the local building department.
- The inspector should be included on the routing of the third-party testing company to review material test reports and report on any performance measurements not meeting specifications.
- The inspector should ensure that all stored materials are stocked in locations that are secure from theft and not in danger of being damaged by trades working onsite or by weather conditions.
- Finally, the inspector should walk the entire site and document any construction concerns that deviate from the plans and specifications or represent shortcomings in the arena of construction best management practices.
- While these items do not represent a full construction audit, they are measures that add to the overall quality control process for a project, further protect the lender’s interests and can help predict potential future budget shortfalls.
Assessing Contractor Efficiency
- The construction inspector should evaluate the number of trades and manpower operating onsite to ensure the project is properly staffed for the current stage of construction. This information can be obtained by interviewing the contractor’s field personnel and reviewing manpower reports.
- The inspector should also determine if the trade groups are being organized in a systematic fashion that promotes not only an efficient sequence of construction, but also project quality.
- The inspector should also evaluate if materials are being delivered and staged at the site in a condition whereby laborers can access, transport and install them in a timely and efficient manner.
Safety and Security
Site security should also be assessed to ensure the improvements are secure from theft or malicious damage. Comments on the presence of security fencing, locking doors, off-hour guards and alarm systems should be part of an inspector’s consideration with respect to security measures at a job site.
How We Can Help
AKT Peerless can perform industry leading Construction Analysis (Cost and Plan) Reviews and Construction Progress Inspections as a part of our client’s loan administration process. The Construction Progress Inspection and Report includes not only a systematic review of the pay application, but additional information about the progress, quality and efficiency associated with a construction progress. At AKT Peerless, we know that our success depends on your success, so we strive to reach beyond the industry standards in our analysis and reporting, and to exceed our client’s expectations with every project.
Call us at 800-985-7633 to arrange a meeting – we’d appreciate an opportunity to show what we can do for you!