Project and Budget Review

 

What is a Project and Budget Review and why do I need one?

Partner conducts a Project and Budget Review as a third party to a construction project and analyzes each line item of a proposed budget to confirm the values submitted are reasonable. We can also look at any approved or potential changes to a budget created by scope changes, design modifications, value engineering, or force majeure.

It ensures that the developer or General contractor submitting the budget are charging realistic rates considering the construction schedule and that the lender or investor are on the same financial page.

A Project and Budget Review is warranted when:

• A budget has been submitted by the Developer or General Contractor which requires a detailed analysis of each line item cost to confirm the values submitted.
• The original budget has been modified, requiring a detailed analysis of each line item cost to confirm the values submitted. This  review compares the new costs with the original budget. 
• A new Lender or Equity Investor requires confirmation of the budget prior to entering into a financial relationship with the Borrower.
• The budget used for the project was not originally prepared by the Developer or General Contractor.
• A document and cost review is not required, but the client still desires some due diligence. 

A Project and Budget Review provides a review of: 

• The original or modified budget prepared by the Developer or General Contractor.
• The original or modified budget prepared by an entity not associated with the Developer or General Contractor.
• Any approved or potential changes to the original budget created by scope changes, design modifications, value engineering, or force majeure.
• The construction schedule and its impact on the budget, if any.

Partner's deliverable will include:

• A report that identifies all aspects of the review
• Analysis and review of the original construction budget as it relates to any modifications or changes in the scope or design.
• An opinion on the findings from this review and recommendations for the Client's consideration.