4 Common Construction Loan Monitoring Questions
Avoiding delays in construction, especially those triggered by financing difficulties, is paramount for timely completion of steps vital to a project. Construction consultants who apply a methodical, tested approach to construction loan monitoring can remove obstacles to prevent late deliveries. These are four common questions people have about CLM, according to EBI Consulting national program director Frank Cook.
1. What is it?
A construction document review should be thorough and comprehensive. EBI’s team evaluates all contracts, plans and budgets. It then provides clients with the detailed information critical to making informed decisions on project commitments.
EBI’s construction consulting team includes licensed architects, engineers and experienced construction professionals.
2. What problems does it solve?
CLM can alert builders to the incompleteness of their plans, flag overly aggressive schedule projections and identify inadequate budgets. The report contains recommendations on how to best address these issues.
“We also help our clients understand risks through one-on-one communication so they can take the necessary actions,” Cook said.
The numerous electronic devices used on construction sites have significantly improved many processes. According to Cook, leveraging new technology has similarly allowed his team to deliver insights that make problem-solving more efficient and orderly.
3. Is it too late to engage a CLM team?
Although Cook and his team prefer to do an assessment before groundbreaking, a review conducted once the project has started will still yield valuable insights.
“Something our clients like about EBI is that we are flexible. We analyze and understand atypical, creative or otherwise out-of-the-box projects, rather than insisting deals fit a rigid set of rules,” Cook said.
Solutions may be more expensive or limited in number after construction commences, but Cook presses his team to explore innovative, site-specific options and get out of the standardized, one-size-fits-all mindset.
“Nobody has the option of taking only the perfect projects at the perfect time, so it’s our job to help people assess the risks and take the ones that make sense for them,” Cook said.
4. Who should I choose?
Cook said he finds many investors and lenders always engaging the same specialized CLM team. By failing to consider a CLM competitor with expertise potentially better suited to the task on subsequent projects, they are doing themselves a disservice.
“EBI’s construction services are tailored to the specific needs of each client, and we provide everyone with our full suite of services, unlike other companies that focus primarily on CLM,” Cook said.
Beyond comprehensive field monitoring and detailed reporting, EBI’s range of offerings spans environmental risk and compliance management, due diligence and engineering services.
“We have extensive experience with small to large ground-up projects as well as renovations, repositioning and value-add projects. The majority of our construction work is done by full-time employees so we can be responsive to market changes,” Cook said.
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