Construction Progress Inspections

This review provides the Lender with an analysis of the construction progress. The OCC Handbook on Commercial Real Estate Lending indicates that Banks must monitor the progress of the projects they finance to ensure that the requests for payment are appropriate given the progress of construction. Bank must obtain accurate and timely inspection reports which reports the work completed, cost-to-date, cost-to-complete, construction deadlines, and loan funds remaining. Our reviews include but are not limited to:

• Review of the plans to determine if construction is in conformance with the approved documents

• Review of special inspections and/or tests

• Review of government/regulatory inspections

• Review of permits

• Review of Application for Payment

• Completion percentage assessment

• Change Order review/assessment

• Schedule/Time Line assessment

• Final inspection/punch list items/C of O