Independent Cost Reviews
Sage Capital Services performs independent cost reviews nationwide for new construction projects, remodels and additions. The projects range in value from $ 100,000 to more than $ 20 million. Our consultants begin by reviewing the plans, specifications and contract documents to provide the lender with an independent assessment of the contractor's estimate. We compare the original estimate with our calculations derived from our experience and utilizing a variety of published cost data. Our findings are disclosed in a report that provides an opinion of the contractor’s estimate compared to the industry average and a review of the anticipated construction schedule for feasibility.
Our standard reports include the following items. Reports can be tailored to meet your specific needs.
- Project Identification
- Executive Summary
- Scope Description
- Site Development
- Cost Analysis based on Square Foot Pricing and/or Detailed Quantity Take-Off and Pricing
- Construction Progress Schedule Review
- List of Documents Reviewed
- Sage Comments
If construction has commenced, the report may also include our comparison of the planned progress schedule to the actual progress and summarizes the project details. In most instances, we then proceed with post-loan services, including progress inspection reports or loan disbursement control.
Independent Cost Reviews benefit the lender by:
- Evaluating Contractor’s license status thereby reducing the lender's and borrower’s risk.
- Eliminating the cost of in-house lender personnel when estimate reviews do not support a full-time salaried position.
- Performing estimate reviews on an as-needed basis.
- One-Point Contact for lenders throughout the construction project.
- Quick turn-around to aid in a timely loan approval process.
- Determining the viability of the project costs and schedule based upon the scope of work.
Job Progress Inspections
As part of loan disbursement management, Sage Capital Services performs monthly (or bi-weekly) construction progress inspections to verify the percent of work actually completed to date vs. the percent complete as indicated on each line of the Contractor's payment application.
The Contractor prepares his payment application each month and provides a copy to Sage Capital. We verify and document the status of the project by photographing and/or videotaping each progress inspection and produce a report based on our findings. This report itemizes our construction observations, including materials stored on site, quality of work, machinery and equipment on site, status of building permit inspections, and pending or approved changes.
Sage Capital provides information regarding pending or approved changes in this report to the extent this information is provided by the Contractor. We document major changes to the plans and discuss these changes with the Contractor to determine potential cost impact. Contractors are responsible for providing a copy of each change order to Sage Capital Services, which is then forwarded to the lender for loan approval purposes
We verify that for each of the amounts requested, there is an accompanying voucher, invoice and/or lien release. It is the Contractor’s responsibility to collect the vouchers, invoices and lien releases and provide them to Sage Capital for review. For expenditures where it is not possible for the Contractor to provide a lien release (e.g., permits, bonds, temporary sanitation, dumpster, etc.), Sage Capital will accept a voucher and invoice only. Upon verification of current progress, receipt of voucher, invoice and lien releases, we will then notify the Lender electronically and forward the documentation to the Lender along with our inspection report.
Loan Disbursement Control
Sage Capital Services performs job site inspections and reviews all of the necessary project documentation to determine if a contractor’s Application and Certificate for Payment accurately represents the actual work performed and that the appropriate backup documentation is supplied.
Our review includes a thorough check of change order requests, lien releases, supporting invoicing and retention.
We then recommend the appropriate amount to be disbursed. Sage Capital’s management of this process reduces the likelihood that the costs exceed the budget and/or that loan disbursements exceed the value of the work in place.
Sage Capital Services performs independent cost reviews nationwide for new construction projects, remodels and additions.
Sage Capital Services performs monthly (or bi-weekly) construction progress inspections to verify the percent of work actually completed to date
Sage Capital Services performs job site inspections and reviews all of the necessary project documentation.