Construction Progress Monitoring can save a lender and a borrower money, especially when instituted on the front end of a construction project.  It is in some cases required by the lender.  When lending money to borrowers for purposes of construction, lenders don’t write the borrower a check for the entire amount up front.  The money is disbursed to the borrower as the construction project progresses.  It’s becoming increasingly crucial for lenders to double check on their projects before they release funds.  Borrowers usually submit a monthly draw for work completed over the previous 4 weeks.  Engaging the right 3^rd party is usually now one of the steps lenders consider during the closing process. 

I’ve found over my many years in the commercial real estate due diligence industry, when performing construction progress monitoring it is very important to be brought in at the start of construction.  When asked to inspect a project for only every 3^rd or 4^thdraw, it can sometimes result in items that should have been looked at to be covered up with the ongoing progress.  Furthermore, an error made on draw one can be very difficult to correct with no additional cost if left unchecked for 2 to 3 uninspected draws. 

It’s understandable that borrowers are looking to save money whenever possible.  However, skipping a draw inspection can, and has, caused additional costs that can out weight a monthly inspection fee.  In almost every case, had inspections with each draw been the order of business, the causes for those additional costs would have been recognized early on.  Thus, the additional costs most likely would either not have been necessary or drastically reduced.

Please feel free to read my article, Half-Built Projects Come with a Whole Bunch of Issues,  for more on my personal experience relating to construction issues.  For additional information relating to construction progress monitoring visit the Partner Construction website.

Having worked as an independent contractor, and as staff for local, regional, national and international environmental and engineering consulting firms, I’ve come to understand the benefits provided at each level. 

Some clients prefer working with smaller, local consulting firms over large national firms. Perhaps they cite that independent contractors or local consulting firms have more local knowledge, may have lower prices or quicker turnaround times. 

Having been with a large national firm for over 8 years, I have no doubt it is the best of all worlds.

National firms have the resources, backbone, coverage and flexibility of a large firm along with the benefits of a small firm – local inspectors with local knowledge.  In many cases the national group will be very competitive on both price and turnaround time, frequently more so than a smaller local firm, because they have greater flexibility of shifting resources around and commonly offer volume discounts. All without sacrificing quality.

As an independent contractor I had very little in overhead costs, but when my client called on me for a project outside my area I was lost and to make up for it, I charged more to cover travel.  Fitting it into my regular schedule would also push my delivery time out a bit.

Furthermore, the service list available with national groups far exceeds those provided by the independent, local or regional provider. 

With Partner Engineering and Science, Inc. clients are guaranteed:

1. One contact person for all projects anywhere in the country.
2. Local and regional knowledge
   1. We have major regional offices with in-house inspectors all over the country and when needed we use additional local inspectors. Our local veterans have been living and working in their respective regions for years.
3. Consistency in reporting, timelines & fee structure.
   1. As a national group, we use both industry standards and our client’s specific requirement guidelines on each of their projects.
   2. The client doesn’t have to explain or experience a learning phase with each new inspector they work with when they use a national group.
   3. With the availability of the large staff, timelines aren’t missed. 
4. Support after the fact.
   1. As a national group, we offer stability and we’ll be here down the road if and when needed.
5. Diversity in talent with a national group gives us the edge on the independent, local and regional groups. 
   1. In addition to the coverage, we retain the best talent and most knowledgeable specialists in the industry.

Still not sure? Give me a call and let us prove it to you. I’d be happy to answer any questions. 800-419-4923.

Partner recently attended the PCIA Wireless Infrastructure Show in Hollywood, Florida.  The energy was high as business is booming for this industry, including the Phase I Environmental Site Assessment world.  With so great a demand for wireless infrastructure, tower companies and developers were eager to network with various services providers, including those with expertise in Phase I ESAs, NEPA assessments, SHPO / THPO consultation and related environmental and construction services.  In our discussions, we noticed an emphasis on service providers with national coverage and local knowledge.  One industry trend observed was that calls are just a small percentage of the network usage; the largest and fastest growing network drain is video and data downloads.  Partner expects this industry will continue to grow as the demand for smart phones and large downloads increases.

During the housing boom, clearing large parcels of land for development became routine.  After the market downturn in late 2008, construction projects throughout the country halted midstream.  On many sites, construction equipment was left to rust and utilities and roadways were partially installed.   The stormwater management and erosion control systems that were installed as a temporary measure to prevent sediment laden-stormwater from leaving the sites during construction are failing, due to a lack of maintenance or poor construction practices.    Nearby waterways are becoming overloaded with sediment from these failed developments.

All too often, large areas of denuded land have become the responsibility of mortgage holders and local governments.   Many local governments are experiencing budget shortfalls and are looking to mortgage holders to fund necessary repairs to stabilize sites.  Lenders are not exempt from liability under the Clean Water Act, and could be held liable for runoff at abandoned developments.  In order to quantify potential liabilities, it is important to make sure that erosion/stormwater inspections are completed as part of the collateral analysis process.

Partner Engineering & Science is experienced with design, construction, evaluation and maintenance of erosion stabilizations projects.

When a construction project stops or delays, the developer and/or the lender is wise to take proactive steps to prevent erosion.   Once a site is cleared, graded, or any earthwork is completed, the site is more susceptible to erosion. 

A pro active approach to maintaining the site and grading conditions is necessary to prevent added expense in the form of re-grading, corrective action or in some cases fines.  There are instances of partially completed subdivisions being flooded as a result of silted over storm drains, landscaping and finish work being destroyed by runoff and even impacting the public or natural waterways due to excess sedimentation.   Recently, one of the largest homebuilders in the US reached a settlement with EPA for Clean Water Act violations. Those violations involved lack of permits or failure to contain sediment on active construction sites.   Several states have implemented erosion control programs strictly to monitor incomplete or dormant construction projects.

On abandoned sites it’s often not clear who’s responsible. A lender is wise to protect their collateral by monitoring the status of the erosion control for their assets. Employing best management practices such maintaining a silt fence, diverting storm water or maintaining low growth vegetation can potentially save millions of dollars in fines and follow up work.

At Partner Engineering and Science, we assist lenders in monitoring their assets to ensure erosion control measures are in place and then in the event that they are not, we help design and implement relatively inexpensive erosion control measures.