Building Consultants, Inc.

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Preconstruction Review

A Preconstruction Review, consisting of a combination of a Construction Documents Review and a Construction Cost Review, preformed by Building Consultants, Inc. (BCI) includes the following:

Review the following documents which BCI can assist in collecting:

Information from the Lender relating to the budget

  • The loan budget including
    • Total loan amount
    • Amount of loan allocated to direct construction costs
    • Contingency amount and how contingency is allocated (soft or hard or both?)
  • Funding sources and any timing requirements for release of funding sources
    • Equity contribution requirement amount if any and when?
    • Participation with other lenders
    • Trigger for commencement of release of Lender’s funds
  • Loan timing requirements including
    • The construction loan maturity date
    • Extension options available?
    • How long/how many?
    • Construction commencement date
    • Substantial completion date
  • The Lender’s funding parameters during construction including
    • Retention % and release requirements
    • Payment allowed for stored materials? What documentation is required?
    • Change order parameters if any (i.e. maximum aggregate amount, maximum individual amount) or the borrower is responsible for payment of all change orders

Information from the borrower and/or relating to the proposed project:

  • Signed and sealed final plans and specifications including:
    • site (grading, water and sewer, roads, storm water management)
    • architectural
    • structural
    • mechanical and electrical
    • tenant improvement drawings where applicable.
  • The plat, preferably recorded, and/or other survey documentation indicating
    • all site boundaries, easements, building restrictions, rights-of-way and buffer zones
    • evidence the property is zoned for the intended use
    • delineated flood plain and wetlands
  • Engineering reports including information on
    • geotechnical conditions, subsurface and soil conditions with the engineer's earthwork and foundation design recommendations
    • environmental report, if not performed by BCI, including historic and current site conditions, Freedom of Information documentation and environmentalists recommendations for further action
    • condition survey report, if not performed by BCI, describing the existing major building systems for improvements to remain where applicable
  • Documentation relating to the construction contracts and agreements, including
    • fully executed copy of the owner/architect agreement
    • fully executed copy of the general construction contract or construction management agreement with all attachments and exhibits, addenda or executed change orders
    • contractor's breakdown of all direct construction costs/schedule of values
    • proposed construction schedule
  • Documentation indicating necessary public or utilities approvals are in place, including:
    • copies of grading, building and other special permits or any required variances or proffers required by local, state or federal regulations
    • verification of availability of utilities, including water, sanitary sewer, gas, electric, telephone
    • fully executed copies of any public works agreements for on- or off-site work

BCI will prepare a written report.

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