Preconstruction Review (RA):

A Preconstruction Review, consisting of a combination of a Construction Documents Review and a Construction Cost Review, performed by BCI includes the following:

Review the following documents which BCI can assist in collecting:

Information from the Lender relating to the budget.

• The loan budget including:
  
  
  • Total loan amount
  • Amount of loan allocated to direct construction costs
  • Contingency amount and how contingency is allocated (soft or hard or both?)
• Funding sources and any timing requirements for release of funding sources:
  
  
  • Equity contribution requirement amount if any and when?
  • Participation with other lenders
  • Trigger for commencement of release of Lender’s funds
• Loan timing requirements including:
  
  
  • The construction loan maturity date
  • Extension options available?
  • How long/how many?
  • Construction commencement date
  • Substantial completion date
• The Lender’s funding parameters during construction including:
  
  
  • Retention % and release requirements
  • Payment allowed for stored materials? What documentation is required?
  • Change order parameters if any (i.e. maximum aggregate amount, maximum individual amount) or the borrower is responsible for payment of all change orders

Information from the borrower and/or relating to the proposed project:

• Signed and sealed final plans and specifications including:
  
  
  • Site (grading, water and sewer, roads, storm water management)
  • Architectural
  • Structural
  • Mechanical and electrical
  • Tenant improvement drawings where applicable
• The plat, preferably recorded, and/or other survey documentation indicating:
  
  
  • All site boundaries, easements, building restrictions, rights-of-way and buffer zones
  • Evidence the property is zoned for the intended use
  • Delineated flood plain and wetlands

• Engineering reports including information on:
  
  
  • Geotechnical conditions, subsurface and soil conditions with the engineer’s earthwork and foundation design recommendations
  • Environmental report, if not performed by BCI, including historic and current site conditions, Freedom of Information documentation and environmentalists recommendations for further action
  • Condition survey report, if not performed by BCI, describing the existing major building systems for improvements to remain where applicable
• Documentation relating to the construction contracts and agreements, including:
  
  
  • Fully executed copy of the owner/architect agreement
  • Fully executed copy of the general construction contract or construction management agreement with all attachments and exhibits, addenda or executed change orders
  • Contractor’s breakdown of all direct construction costs/schedule of values
  • Proposed construction schedule
• Documentation indicating necessary public or utilities approvals are in place, including:
  
  
  • Copies of grading, building and other special permits or any required variances or proffers required by local, state or federal regulations
  • Verification of availability of utilities, including water, sanitary sewer, gas, electric, telephone
  • Fully executed copies of any public works agreements for on- or off-site work