CONSTRUCTION LOAN ADMINISTRATION
Atelier offers construction loan administration to lenders for both new developments and existing properties that require substantial capital expenditure improvements and require added oversight.
We offer a full range of third-party construction loan administration services. Our Construction Loan Administration group gives clients an effective and efficient mechanism to administer construction loans and manage their construction lending risk.Our proven experience includes:
· Out-of-the-ground office, retail, hospitality, residential and multifamily housing construction
· Condominium conversions
· Major mall rehabilitation, phased expansions and out-parcel developments
· Substantial renovations
· Distressed property asset administration
For new projects, we are typically engaged prior to closing, at which time we complete a document and budget
review, participate in closing activities and attend the initial planning meeting.
Our post-closing services include:
· Construction and budget monitoring
· Disbursement administration
· Title insurance management
· Loan servicing
Pay Application Reviews - Atelier visits the project site to review the contractor’s application for payment and document the progress of the work. Atelier will compare the general conformance of the work to the drawings and specifications and that the monies requested by the contractor are for work actually completed. During this review Atelier performs the following tasks:
Review the contractor’s application for payment for proper completion and execution.
Review each line item for which monies are being requested to determine if the work is completed to the corresponding percentage complete.
Review any changes in the work, either identified or considered, and comment to the lender on the impact of the change in the project scope, budget or schedule.
Require any proposed changes in the work to be approved by the lender (in addition to the owner, architect, and contractor) prior to recommending payment.
Collect the general contractor’s Conditional Release of Liens for the current application and an Unconditional Release of Liens for the previous application.
Provide photographs to document our findings.
We will prepare a detailed report outlining our findings to alert the lender to any potential problems and suggest payment terms to the general contractor
Full Construction Risk Management (Full CRM):
Full Construction Risk Management (CRM) is a combination of our services listed above. Atelier believes the combination of these services offer the best protection for a lender on a construction project. Atelier will review the application for payment to verify the monies requested are for actual work completed. Atelier a review of lien releases, subcontractor and supplier invoice support and supporting documentation required of the contractor, Atelier prepares individual checks to be paid directly to the general contractor, subcontractors and suppliers for their specific parts of the work and collects the lien waivers to help ensure that the project remains lien free. These checks along with the lien releases are sent to the general contractor for distribution to each party. With the meticulous Atelier record keeping procedures, the owner, lender and contractor will receive tremendous value.