Project & Budget Review
A Project and Budget Review (PBR) is a focused examination, usually conducted before the finalization of a construction loan, concentrating on specific elements also covered in a Document and Cost Review. These elements may encompass the Budget, Schedule, Drawings and Specifications, Construction Contract, and any other pertinent documents related to budget and scope. Serving as a streamlined assessment, the PBR seeks to ensure coherence among the three fundamental aspects of any construction endeavor: the budget, the scope, and the schedule. It is particularly suitable for smaller projects (e.g., under $1 million), projects with limited scope (e.g., tenant fit-outs), instances with sparse documentation, and other similar scenarios.
What's Involved
A Project and Budget Review is necessary under the following circumstances:
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When a budget submitted by the Developer or General Contractor necessitates a meticulous analysis of each line item cost to verify the submitted values.
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When the original budget has been amended, mandating a detailed examination of each line item cost to validate the submitted values, comparing the new costs with the original budget.
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When a new Lender or Equity Investor seeks confirmation of the budget before establishing a financial relationship with the Borrower.
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When the budget utilized for the project was not initially prepared by the Developer or General Contractor.
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When a document and cost review is deemed unnecessary, but the client still desires some level of due diligence.
A Project and Budget Review encompasses an examination 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 resulting from scope alterations, design modifications, value engineering, or force majeure.
The construction schedule and its potential impact on the budget.
The deliverables from the HPP CARES will include:
A comprehensive report outlining all aspects of the review.
Analysis and evaluation of the original construction budget in relation to any modifications or changes in the scope or design.
An assessment of the findings from this review, along with recommendations for the Client's consideration.