Periodic Progress - Limited

On-going inspections are performed to ascertain the progress of construction, establish an estimated value of work in place, identify changes in construction costs or completion, and verify adequacy of remaining funds to complete the work. Quality of workmanship and adherence to bank approved plans are key factors to be addressed.

Periodic site visits must be conducted to evaluate the progress of work at the project and may be requested with or without a contractor's application for payment or owner/borrower's request for funds. The Inspecting Consultant is expected to participate as PNC's representative at routine, monthly construction draw meetings. Below are guidelines for standard requirements of progress reports.

General Information

Owner/Borrower Name
Project name and location
Description of the project
Contractor's AIA requisition number and period covered or comparable description of period reviewed

Scope of Review - Limited

Each report should include commentary on the following topics:

Date of inspection and who attended (include time of day and weather conditions).[Visits will not be required to coordinate with the development team's monthly draw review.]
Opinion of projected completion status and ability or plans to keep project on track.
Discussion of quality of workmanship and materials.
Tracking of executed change orders and updated contract sum; indication of schedule impact related to changes, if any.
Summary of Stored Materials included in current draw that are on site and off-site. Comment on adequacy of stored material protection controls. [Validation of off-site materials is only to be done with specific request.]
Identification of observable or reported material deviations from Plans and Specifications.
Recommendation of the current application for payment or adjustments with explanation.
Statement of overall percentage of completion based on current construction contract(s).
Statement of retainage withheld and released, aggregate and in current draw.
Other matters that may arise which would affect the timely completion or quality of work.
Photographs. Comprehensive photographs should be labeled, depicting overall progress of construction at time of site visit, as well as pictures that reflect any areas of concern.

Reporting Requirements:

Oral Report

Whenever possible, an oral report of the progress of construction, areas of concern and a recommendation of the amount to be funded should be provided to the PNC designate (usually the loan administrator). If timing or materials constraints prohibit delivery of the written report by the commissioned due date, the consultant must promptly notify REA or the PNC designate to determine how to proceed.

Written Report

A written report is required within one week following the on-site visit, including copies of the current draw request. Delayed delivery of this information could impact our ability to comply with Loan Documents and providing Customer funding. Electronic or compact disk delivery of the report, exhibits, and photographs may be provided in lieu of hard copies, provided that these are easily accessible and fully legible. Reports should be delivered to the PNC designate, unless otherwise requested by the Process Managers in Real Estate Administration.

Questions should be directed to Real Estate Administration.