Preliminary Analysis - Limited

Inspections of construction projects are undertaken to mitigate inherent risks associated with project development and to establish the value of improvements in place. Inspections of proposed real estate projects may encompass pre-construction services such as plan review, cost analysis and construction document review to determine the quality and completeness of the plans and specifications, adequacy of committed funding sources, and reasonableness of the construction schedule.

General Information

An executive summary should be provided at the beginning of the pre-construction analysis report, which includes the following information:

Owner/Borrower Name
Project name and location
Description of the project
Statement of consultant's scope of work performed and assumptions made
Identification of Development Team

[Developer (if not the Owner/Borrower), Architect, Contractor, Engineers, etc.]

Overview and conclusions regarding Design, Documentation, Budget and Schedule of proposed construction. This section should summarize open items and areas that require additional research or documentation.

Scope of Review - Limited

The pre-construction analysis report should focus on these primary factors:

Project Budget
Completion Schedule
Construction

The following list outlines several key areas that should be addressed in the pre-construction analysis report

CONSTRUCTION CONTRACT review should include identification of the type of contract, if it has been executed, and whether it covers all of the work contemplated in the proposed plans and specifications.
COST EVALUATION based on a detailed construction budget, unless otherwise specified. Indicate if there are allowances in the scheduled values for trades and provide an opinion as to the adequancy of the allowances.
REVIEW GEOTECHNICAL REPORT AND SURVEY. If available, the consultant will review the geotechnical / soils and subsurface reports and the ALTA Survey. Consultant should comment on conclusions and recommendations in the soils reports and issues that the survey may reveal.
PLANS AND SPECIFICATIONS. The plan review will include confirmation of the architect and engineer's stamps, if applicable, and local building inspection approvals. Conclusions should address completeness of plans and specifications, and comments, concerns or recommendations made by the architect, engineer or municipal inspection reviewers. Any potential limitations on the intended use of the project based on the plans and specifications must be highlighted (e.g., poor access, inadequate parking, etc.) The report should include the list of plans reviewed and the date of each.
ACCESSIBILITY. The consultant will advise if the plans appear to generally conform to the American with Disabilities Act (ADA) and applicable Fair Housing standards.
COMPLETION SCHEDULE. Identification of the contracted completion time and dates. Conclusions should address reasonableness of completion schedule, coordination of trades, and identification of potential construction conditions that could impact achieving the proposed completion date (material shortages, off-site factors, long lead items, etc.)
PERMITS AND REGULATIONS. The report should list all permits, variances, approvals and licenses that have been or need to be issued for the project during construction or to enable the intended usage of the property. Conclusions should address any staging or delays in issuing permits and commentary on variances or specific ordinances that may impact occupancy or use of the proposed property.

Comments and Conclusions

This pre-construction analysis report should include your opinion as to the following

experience and qualifications of the development team
completeness of Plan and approvals
adequacy of budgets submitted by Owner/Borrower/Developer
feasibility of construction schedule
conclusions about open items or concerns and the impact of these issues to the project in adequate detail for us to evaluate whether closing of the transaction should be effected

Reporting Requirements:

Oral Report

The consultant should notify the PNC designate by oral report if there are substantive concerns or if the requisite materials are not available to enable the consultant to complete the scope of service detailed above. If timing or material 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

Two written reports are required, unless otherwise specified. Additional copies of the report may be required for syndicated transactions or requested periodically by the Real Estate Administration contacts for quality control purposes. The written report should be delivered to the PNC designate within two to three weeks following the on-site visit. Comprehensive photographs of the project should be mounted, labeled and included with the written reports. A list of all documents reviewed should be included in the report and copies of third-party reports,permits and variances etc. should be attached. For plans and specifications, a comprehensive list of the drawings and the last revised date must be included. 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.

Special Instructions

Variations in the timing and content of the scope of this work and delivery of the report may be directed based on the specific project and financing needs. If this is determined prior to engagement, the specific terms and scope changes would be shown in the Bid Request under Special Instructions. Changes after engagement may be communicated by subsequent e-mail, fax or written communication.

Questions should be directed to Real Estate Administration.