Preconstruction Due Diligence – The “Front-end Review”

Identifying construction risk prior to the start of construction can lead to success. Our Preconstruction services include review of construction and contract documents in an effort to identify risks or concerns prior to the start of construction. This review is typically known in the industry as the Front-end Review. 

The Front-end Review is typically performed prior to loan closing and include the review of the following documents:

• Design Plans and Specifications reviewed for:
  completeness & comprehensiveness; foundation design consistency with Geotechnical Report; sealed by appropriate design professionals; appropriate level of review/approval by local building department.
• Owner-Contractor Agreements reviewed for:
  Contract form (AIA or non-AIA); basis of payment (fixed price, cost-plus with g-max); contract duration; liquidated damages; payment terms (retainage); exclusions & clarifications; supplemental contract documents (list of plans, schedule of values, exhibits)
• Geotechnical Report reviewed for: 
  Subsurface risk factors (rock, muck, debris, water); appropriateness of site to support intended improvements; site preparation requirements; foundation design recommendations
• Contractor Schedule of Values reviewed for:
  Completeness (CSI Divisions); comprehensiveness with the intended improvements; consistency with contract sum;
  A Cost Analysis will be performed as part of the Front-end Review to further evaluate the adequacy of the budget by using comparable costs with similar completed projects.
• Owner Project Budget reviewed for:
  Budgeted items excluded items by GC (design fees, bonding, insurance, FFE); sufficient contingency