Chapter 4 – Green Construction Cost Monitoring
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Publisher Summary
Lenders are usually presented with conceptual designs and specifications, proformas, construction cost estimates, etc. by the borrower, who is typically the project owner for the primary purpose of providing enough information to be able to make a loan determination. The construction consultant is hired by the lending institution to examine the conceptual design and specifications or contract documents for engineering soundness and compliance with governmental regulations, and make an assessment of cost comparables for similar projects, in addition to a trade-by-trade breakdown. The lender often requests the consultant to perform a one-time front-end analysis consisting of the following services, which are summarized in the project analysis report (PAR) prepared for the lender. The majority of lenders have developed their own requisition form or format that they would prefer for the borrower to use. The value of the job cost report is that it provides timely information about the status of the project budget and allows the administrator to take whatever action may be necessary to bring the project into compliance with the original budget. Each report is presented in a form designed to convey accuracy and offers the lender a feeling of actually “walking through” the site with the consultant. Quality monitoring and its assurance ensure that processes and systems are developed and adhered to so that the deliverables are of superior (or at least acceptable) quality.