Funds Administration Services

CLM Group provides varying levels of monitoring and funds administration for construction project progress depending on the Lender’s desired level of service and risk mitigation.

▣ Project Funds Administration Package Options

Option 1:  Full Funds Administration includes:
  • The full range of ALL Funds Administration services
  • Fees are calculated on a percentage (%) of total funds disbursed.
  • Option 2:  Basic Funds Administration includes:

  • The standard Basic Funds Administration services
  • Fees are calculated on a per service event  basis
  • Option 3:  Basic PLUS Funds Administration includes
  • Any combination of standard Basic Funds Administration services PLUS desired additional services to complete a customized package
  • Fees are calculated on a Fees are calculated on a per service event  basis  basis
  • All Funds Administration Risk Mitigation includes:
  • Ensuring that the requested draw is within budget by Construction Standard Industry (CSI) project cost codes.
  • Compliance support for SBA-7a, SBA-504 and Conventional loans
  • In performing services for its clients, Construction Loan Monitoring Group, Inc. does not act as an escrow agent, does not take title to funds in construction disbursement accounts and is not authorized to sign checks drawn on construction disbursement accounts.

    ▣ Project Funds Administrative Service

    Full Basic
     Project Set-up
       
    Construction Contractor Review
    Ensure Trial Budget is approved by Lender, Borrower and GC
    Contractor due diligence (license, insurances)
    Project kick-off meeting (lender, owner, GC, CLM)
    Contractor training for draw process procedures
     Hard Draw Processing, Inspections, Reporting
       
    Apply draw request to budget for line item balance & retention
    Collect adequate draw support (invoices & lien releases)
    Inspect project site verifying % complete, draw accuracy and materials on site
    Provide inspection reports and updated budget status to Lender for funding
    After funding, provide inspection reports and updated budget status to Borrower and Contractor
     Funds Administration
       
    Create Draw Control Summary with Payee detail
    Prepare checks for all payees (GC, subs and suppliers)
     
    Forward checks to check signer for signature & distribution
     
    Collect and track pre liens
     
     Project Completion Compliance Tracking
       
    Collect Notice of Completion
     
    Monitor title date down at completion of construction
     
    Collect Certificate of Occupancy
     
    Collect final job card sign offs
     
    Collect warranty letters
     
    Collect completed & signed punch list
     
    Collect Unconditional Final Lien Releases
     
     Soft Draw Processing and Reporting
       
    Apply soft draw requests to budget for line item balance & retention
     
    Prepare payments for purchase for FF&E (Furniture, Fixtures, Equip)
     
    Prepare reimbursements for Owner/Borrower
     
    Update budget with periodic interest payments
     
    Record Lender loan fees
     
     Support Services
       
    Reconcile bank accounts
     
    Administer Letters of Guarantee
     
    Administer Change Orders and Reallocations
     
    Delivery of completed project records to lender in CD format.
     

    ▣ Project Closeout and Completion Reporting

  • At project completion CLM Group provides the Lender a closing statement that includes a full set of records documenting the financial and construction history of the project
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