CLM Group

Full Funds Loan Monitoring

We provide project and budget monitoring services to ensure an additional level of risk management to key participants in the real estate development process. We maintain communication, for the life of the project, between Lender, Borrower and General Contractor with the goal of preventing problems before they occur.

  • Managing and Controlling the Budget
  • Mitigating Risk in the Draw Request/Funds Disbursement Process
  • Inspecting the Site for Validation of Progress

Lenders, Owners, and GCs can benefit from our services – click the links below for more details.

NOTE: It is important to note that CLM GROUP is not deemed the equivalent of, or a substitute for, architectural or engineering supervision.  CLM GROUP is not responsible for determining whether the job is built in accordance with plans and specifications, satisfies applicable building code requirements, or meets a minimum standard of workmanship.  CLM GROUP is not to be construed as the Owner/Borrower’s project manager.   During the project, CLM GROUP has a fiduciary obligation to the Lender to monitor and control funds in accordance with the loan agreement.

CONSTRUCTION LOAN MONITORING SERVICE

Pre-Construction Services

Contract review (verify value, signers, and duration)

GC license check (review current state license)

Ensure balanced baseline budget (verify with all parties)

Update with verified injection

Secure signature specimen verification

Secure GC license copy

Collect construction schedule, plans and permits

Conduct project initiation and kick-off meeting

Conduct GC training using AIA formatted workbook

Collect and track pre-liens
Construction In-Progress Services

Hard Cost Draw Processing
Confirm permits at first draw

Re-verify GC license at each draw

Ensure owner signature approval for each draw

Compare draw request to budget by cost account

Ensure retention 'hold' for applicable cost accounts

Ensure compliant invoices, proofs of purchase

Ensure compliant lien waivers (conditional progress/final)

Process reallocations and change orders prior to work

Submit draw backup to lender for funding approval

Notify borrower of funding approval

Provide post-draw reports to Owner and GC

Soft Cost Budget Maintenance
Compare soft draw requests to budget by cost account

Ensure compliant invoices and proofs of payment

Ensure compliant lien waivers (as required)

Process reallocations as necessary

Submit soft draw backup to lender for funding approval

Update budgets with periodic interest payments & loan fees

Site Inspections
Maintain a prompt monthly inspection schedule

Remind GC of upcoming inspections and draw due dates

Conduct site inspections for review of work associated with current draw

Verifying current permits with each inspection

Provide comprehensive inspection report including photos of project progress
Date Down and Project Completion

Date Down
Notify all parties of date down requirements

Collect recorded Notice of Completion

Collect all unconditional final lien waivers

Collect completed and signed punch list

Project Completion Due Diligence
Maintain complete audit trail for all disbursements (request, approval, funding)

Maintain record of all communication regarding project

Maintain records for draws, inspections, reallocations, change orders, and pre-liens

Deliver completed project records to lender at close of project
Optional Pre-Construction Services*

Subcontract Collection and Retention

At project setup we record and retain all subcontracts provided by lender

We will periodically send Lender a list of all retained sub-contracts

* Optional Add-on Services fees will apply
Optional In-Progress Services


Check Preparation

Prepare payee checks with Payee Detail Report and forward to authorized signer

Forward payee checks to signer with self-addressed and stamped envelope for distribution

Overnight delivery of checks via third-party courier
Optional Project Completion Services*

Recertification for SBA Compliance

Additional "Final Inspection" which is commonly used in the case of proposed construction where an appraisal is completed subject to completion of plans and specifications
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