Progress  Inspections  |  Consulting  |  Risk  Management  
  
Risk  Management  
 
Beyond Progress Inspections and Consulting, Construction Risk Mitigation, LLC (CRM) provides Risk Management services to customers. Commercial projects (typically over $1,000,000 in construction costs) require an additional level of scrutiny not only because of the complexity of construction but the inherent changes that will occur to total project cost as time progresses. These changes must be accounted for in terms of funding source in order to assure a project’s feasibility and viability.

CRM provides regular scheduled analysis on project funding versus preliminary cost estimates for commercial projects. The analysis provides a tool to control spending. It also shows the impact change orders have on total project cost, and assists in planning ahead for shortages of funds. This analysis obviously cannot be done without the sharing of information among the Borrower, Financier and CRM. The shared information could encompass loan closing statement(s), preliminary cost estimate(s), sources & uses of funds statement(s), monthly loan funding/draw request forms, AIA pay request forms and soft cost invoices. Sharing these type materials with an independent third‐party has rarely been done in the past and may create some concern, but a duly executed Consulting and Confidentiality Agreement in advance of engagement should ease the hesitation.

CRM believes that the establishment of proper funding/loan structure prior to the start of a construction project is a must, otherwise all involved are “flying blind.” Clients are provided assistance on building funding/loan structure through the Consulting services CRM provides. (See “Consulting” tab.)