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 deliverables from the HPP CARES will include: