During the selection process of a Contractor by the Borrower, a Contractor Evaluation may be requested by the Lender to determine the Contractor's qualifications prior to final approval by the Lender or once the Contractor has been selected by the Borrower, the Lender may request a Contractor Evaluation to determine their viability prior to loan closing.
Nationwide Construction Loan Monitoring (NWCLM) is a valued partner in examining the proposed Contractor's adequacy, experience, and financial viability which includes a review of the Contractor's licensing, credit, finances, project experience, references, and litigation to determine the Contractor's ability to complete the proposed project.
Nationwide Construction Loan Monitoring (NWCLM) provides independent cost reviews from coast to coast for a variety of Lenders on new construction projects, remodels, and additions. The projects range in value from $150,000 to $25 million. We begin by reviewing the plans, budget, contract, schedule, and associated contract documents to provide the lender with an independent assessment of the Contractor's estimate. We compare the original estimate with our calculations derived from our experience utilizing a variety of published cost data sources. Our findings are disclosed in a report that provides an opinion of the contractor’s estimate compared to the industry average and a review of the anticipated construction schedule for feasibility.
Independent Cost Reviews benefit the lender by:
Nationwide Construction Loan Monitoring (NWCLM) will perform progress inspections and review all of the provided project documentation to determine if a contractor’s Application and Certificate for Payment accurately represents the actual work performed and that the appropriate backup documentation is supplied.
Nationwide Construction Loan Monitoring (NWCLM) will facilitate and manage loan disbursement control in which case our services will also confirm that with each application submitted by the Contractor, there is an accompanying voucher, invoice, and lien release provided from the Contractor and each subcontractor to be paid on the application. It is the Contractor’s responsibility to collect the vouchers, invoices, and lien releases and provide them to NWCLM for review. For expenditures where it is not possible for the Contractor to provide a lien release (e.g., permits, bonds, temporary sanitation, dumpster, etc.), NWCLM will accept a voucher and invoice only.
Upon verification of current progress, receipt of vouchers, invoices, and lien releases, we will then notify the Lender electronically and forward the documentation to the Lender along with our inspection report which includes the recommendation for the appropriate amount to be disbursed to the Contractor and Subcontractors.
NWCLM management of this process greatly reduces the likelihood that the costs exceed the budget and/or those loan disbursements exceed the value of the work in place.
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