Tenant Improvements

When core and shell construction is completed, tenant fit up may continue. In those situations the consultant will be asked to review progress of the tenant improvements on a frequency consistent with the leases and reported work in place. Generally, these site visits will be no less than quarterly during the first 12 months immediately following core and shell completion. This scope can also be applied to new loans which may have open tenant space for lease.

General Information

Owner/Borrower Name
Project name and location
Description of the project, including occupancy and spaces under construction
Contractor's requisition number and period covered.

Standard Scope of Review

Date of inspection and who attended (include time of day and weather conditions).
Status of Progress Schedule for each tenant with opinion of ability to complete on time.
Discussion of quality of workmanship and materials.
Validation of scheduled values, previous draws, current request and reallocations of scheduled values.
Change Order summary (executed and pending), address dollar value and budget adequacy; explain scope of work and impact on original work plans (as to design and quality resulting from change) and on project schedule. Identify Borrower or Tenant payment for changes.
Attic stock and stored materials inventory and usage.
Adherence of work to plans and specifications or work letter by tenant.
Compliance with applicable codes; possible violations and corrective actions.
Identification of costs and work to be reimbursed to Borrower by Tenant.
Recommendation of dollar value of work in place less retainage.
Percentage of completion, including line item review by trade.
Adequacy of project funds available to complete tenant improvement work.
Review retainage. Confirm that retention is consistent with construction documents. Provide opinion on reduction or release of retainage when requested.
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 tenant improvement construction and a recommendation of the amount to be funded should be provided to the PNC designate (usually the loan administrator).

Written Report

A written report is required within 2 weeks following the on-site visit, including copies of relevant documents; such as, application for payment, updated permits, certificates of occupancy, change orders, etc. 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 by PNC 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.