The lender hired EBI’s Construction Consulting Services (CCS) Team to work directly with the developer to track project costs, milestones, materials, documentation, and project closeout. The project started as a standard CCS contract: a Construction Plan and Cost Report (CPCR) followed by monthly Construction Monitoring Reports (CMRs).
After successfully performing the CPCR, EBI conducted monthly CMRs to keep the lender updated on the project progression and to help them determine whether to fund the next loan disbursement. After several months of construction, the developer experienced issues with the general contractor regarding cost ambiguities, scheduling challenges, and missed milestones. While these problems can be common in the construction industry, the developer concluded that the issues with the general contractor were impeding the success of the project to the point that it was decided to take the significant step of removing them from the project.
EBI facilitated communication among the parties, working alongside lender and developer to provide the best possible solution for all the parties involved. It was agreed that the developer would take charge of the project, overseeing the subcontractors. Fortunately, all but two subcontractors remained on the project. Although the lender suspended disbursements during the transition period, EBI continued to make regular site visits while reviewing and advising on the new project framework, revised project documentation, milestones, and new schedules. EBI also compiled CMRs from the four-month-long transition period into one report for the ease of the lender, who began disbursing the loan proceeds after the developer met certain transition period milestones.
The new framework proved successful. The first two buildings were finished on their revised completion date of June 1st, 2018, and the last building is on schedule for completion in the fall of 2018. The completed buildings are already fully utilized and occupied by resort owners. Despite some challenges, this project became a success due in large part to the collaborative efforts of the lender and developer, as well as through EBI’s project coordination. Once the project framework was reworked, EBI’s accurate and detailed reports gave the client confidence in releasing each loan disbursement, allowing the developer to move through each phase of the project and remain on schedule with ease.
EBI's diligent CLM professionals were able to navigate the project hurdles and effectively smooth any difficulties between the interested parties. The experienced and meticulous field assessors on the project were able to ensure the developer’s compliance with the lender’s project milestones and reassure the lender that the loan provided would perform as intended. EBI’s collaboration with both parties became a valuable resource and greatly contributed to the project’s success.