Our goal is to identify physical and financial construction risk that could lead to collateral impairment.
From planning through completion of the collateral, we provide stringent quality control products and services to make sure the project is completed as appraised and as your borrower has envisioned.
Plan, Specification and Cost Review (PSCR)
This service will determine if the hard cost budget is adequate and reflects the work shown on the project plans and if your project can be completed according to schedule and scope. Contract and permitting issues will be clearly identified. This review is conducted by construction specialists and professional engineers.
- Review of construction drawings, hard cost estimates, contracts, permits, budgets, surveys and schedules
- Comparison of hard cost estimates to various databases for entire construction project
- Identifying issues which could negatively impact project budget or schedule
- Provide risk-mitigating recommendations, including assessment of project contingencies
This service includes periodic inspections based on schedule and lender requirements to provide physical confirmation of progress and appropriateness of funding. Service features:
- Monitoring conducted by experienced construction professionals
- Verification of contractor payment requests
- Review of lien waivers and change orders if requested by client
LCS can provide a single fee for the plan, specification, and cost review (PSCR) and a set number of periodic inspections on small balance and construction loans. Service features:
- An established fee that identifies total hard cost risk control fees and allows loan budgets to be finalized
- The number of inspections can be determined from the expected construction schedule
- Meets USSBA requirements for Phase I ESA
Property Condition Assessment (PCA)
This report provides a physical inspection of building and site systems and components along with projections for repair or replacement costs associated with any deficiencies identified during our investigation. It is completed in accordance with latest ASTM or client standards and can be tailored to meet client or project-specific needs. Report features:
- Inspection and evaluation conducted by experienced construction professionals
- Descriptions of current structure and systems as well as a cost reserve analysis and photographic documentation
Property Inspection Report (PIR)
This report is often used in lieu of the more expansive PCA engineering study. It provides an evaluation of current conditions and recommendations for immediate repairs or improvements. Report features:
- Limited scope site inspection as compared to ASTM Property Condition Assessment
- Overview of property condition and expected repair and maintenance with photographic documentation of identified issues
Peer Review Services
LCS provides peer reviews of Property Condition Reports, Plan, Spec and Cost Reviews and Draw Inspection Reports. Reports are reviewed to determine adherence to ASTM and/or industry standards and accuracy of the findings and recommendations. Recommendations to the Lender are provided where deficiencies are identified in the subject report.