During construction, the lender will require the project monitor to monitor the progress of the construction and to report any significant delays which occur that could affect the planned completion date. The points below offer additional factors to demonstrate the value a project monitor can bring to a project:
- Independence – The borrower’s consultants will have produced numbers and timescales under the employment of the borrower, so these numbers and programmes may have been influenced by the borrower to be lower, in terms of costs and shorter in terms of the program, than the realistic cost and timeframe of the project. In the same way a lender will get an independent view on the valuation, he should also get an independent view of the costs and programme.
- Second pair of eyes – A project monitor will provide the lender and the borrower with a second view of the costs and double check all the information.
- Experience – It is important that the project monitor is an experienced consultant and is able to apply realistic experience to his ‘gut feeling’ of the scale of costs.
- Assistance – Due to the amount of experience a project monitor has, there are very few situations which occur in the life of a project that a project monitor has not seen before. Project monitors can apply this experience to help the borrower when awkward situations arrive.
- Working with the lender’s other key appointments as a team – The lawyer and valuer will require the project monitor’s input to provide the right advice to the lender.
At Adair, the project monitoring team has extensive experience of monitoring developments, from modest loans to large-scale development projects across both residential and commercial sectors. If you need assistance, please contact us at firstname.lastname@example.org or contact Richard Payne, Director Project Monitoring at email@example.com | Mobile: + 44 (0) 7810 623479