Confidence in Lending Decisions
One of the most significant challenges in construction lending is the risk of financing a project that falls short of its potential. Without a thorough assessment and proper scoping at the outset, construction projects may encounter unforeseen obstacles that can disrupt or delay the entire building process.
A Project Feasibility Study (PFS) offered by Partner Residential Consulting is a comprehensive review designed to assess the viability of proposed projects. This study encompasses a thorough examination of the project’s scope, cost, and compliance considerations. The PFS process provides stakeholders with a comprehensive understanding of the project’s feasibility, helping to make informed decisions and mitigate potential risks.
Our Project Feasibility Study Process
The key components and features of a PFS include:
- Scope, Cost, and Compliance Evaluation: The PFS includes a meticulous review of the project’s scope, ensuring clarity and completeness. The associated costs and compliance requirements are also rigorously examined.
- Line-by-Line Cost Allocation: Partner scrutinizes cost allocations on a line-by-line basis to the overall hard cost. This process ensures that each budget item is thoroughly validated for adequacy in completing the project.
- Scope Alignment with Existing Conditions: In renovation projects, the PFS includes an evaluation of the defined scope of work against the existing conditions of the subject property. This ensures that all necessary repairs and improvements are accounted for in the budget.
- Cost Examination for New Construction: For new construction projects, the PFS includes a review of the cost in relation to the approved plan set. This examination ensures budget alignment and compliance with contractual agreements between the General Contractor (GC) and Owner.
- Budget and Contractual Compliance: A PFS verifies that the project’s budget adheres to the approved plan set and ensures compliance with contractual agreements between the GC and Owner, and alignment with lender guidelines and credit policies.
Benefits for Residential Construction Lenders
When you work with Partner for a Project Feasibility Study, you gain invaluable insights that translate to:
- Reduced Risk: Identify potential problems upfront, allowing for mitigation strategies before they impact your loan.
- Enhanced Confidence: Make informed lending decisions backed by a thorough understanding of the project’s true financial picture and underdeveloped specifications.
- Streamlined Approvals: A well-defined feasibility study can expedite the loan approval process for qualified projects.
- More Accurate Appraisal Valuations: Better-defined scopes of work result in more accurate After-Renovated Values or Subject-to Values.
Partner with Certainty
Don’t settle for uncertainty. Partner’s Project Feasibility Study provides the critical analysis you need to move forward with confidence. Contact us today to discuss your lending needs and how we can help you minimize risk and maximize opportunity.
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