Bank Loan Advisory Services

Bank Loan Advisory Services are designed to assist a lender on a construction project in which a review by a third party of the initial contract documents as well as periodic construction inspections are a requirement of the loan. Construction inspections are meant to confirm the extent to which construction has proceeded and to verify that the applications for payment submitted by the Contractor coincide with the level and quality of work completed. Bank Loan Advisory Services safeguard the lender against upfront loading of a construction project’s payment schedule.

Typically provided to a lender during the Construction Phase of a project, Bank Loan Advisory Services are separated into three phases:

Phase I – Initial Plan Review & Report

C.T. Male Associates provides an analysis of the final construction plans, specifications, permits, contracts and construction costs. A written report detailing the findings of the review assist the bank in determining the feasibility of the project. Depending on the client preference or amount of the loan, short form or long form reports can be prepared.

Phase II – Periodic Project Inspection

Each time a certified Application for Payment is received, a visit to the project site for an inspection of the construction progress is performed. Typically it is assumed that an application for payment is received monthly and in turn requires monthly visits by C.T. Male Associates to perform our services. After each monthly inspection is performed, a written opinion is rendered as to the status of the construction at the time of each site visit, as well as the workmanship and adherence to the plans, specifications and contracts, as they may appear and may be observable at the time of each inspection. Additional items under review, dependent of the lending institution’s funding requirements, may include project schedule, change order requests and use of contingency funds.

Phase Ill – Additional Site Visits

Additional site visits can be performed beyond those visits required for the received Application for Payment, and as required by the Lending Institution.