Construction Funds Control In New Jersey
Gentile Consulting Group provides funds control & loan monitoring in the construction industry. Our services empower the lender or partner to make an informed judgment on the quality of the project before any funds are committed.
Our team manages the construction loan draw process and provides updates on the status of construction, project costs, potential overruns, potential delays, contractor payments and change order claims. Funds control allows the lender or partner to identify problems as they occur in real time, allowing for remediation to take place as quickly as possible. Further, funds control is a government approved alternative to a payment and performance bond, and is also much less expensive than bonding.
What is Funds Control?
Construction fund control is a process where a third party verifies the construction budget, draw documentation, and work progress to help lenders accurately manage the construction loan draw process. This service saves lenders time by taking site inspections and drawing reviews off their plate. Large, multi-million dollar construction projects have many moving parts that need to be kept in order.
Our team works to make the fund disbursement process simple & positive for all parties by acting as an intermediary between the lender (banks, private equity firms, and private individuals) and the borrower (contractors, builders, and owners). We do everything in our power to keep both our clients (the lenders) and our clients’ clients (the borrowers) satisfied.
Why Do You Need Funds Control?
Large construction projects have a complex nature and these complications need to be overseen. Especially when a lot of money is at stake. When a third party like Gentile Consulting Group takes charge of funds distribution, the risk of mismanagement decreases. Suppliers, subcontractors, and vendors expect to be paid for the work they contribute to the project on time. This allows for the project owner to be reassured that everything is taken care of, giving them the opportunity to focus their time and energy on other projects.
Loan Portfolio & Budget Review
We begin with a detailed analysis of the construction budget and schedule that has been provided by the borrower. We coordinate with the lender & borrower to review these documents, the building plans & specifications, to fully ensure that the proposed budget is sufficient with the project scope.
Our in-depth analysis helps reduce lenders risk by reviewing all sites and vertical costs, with an emphasis on those components that historically have the potential for cost overruns. All parties need to know that the construction budget is sound, and the lender needs to validate the sufficiency of the costs that have been submitted to underwriting.
GCG will also search for patterns within the borrower’s portfolio of projects to confirm that the client constructs projects on schedule and that there are not any cost overruns. This information allows us to help the lender assess the level of risk they would be exposed to on an individual or macro level.
Work Progress Inspection
We’re in the field on a regular basis to inspect project progress and meet with the project team. There’s no better way to assess the health of a project than to see and hear first hand, issues that are being tackled by the borrower, contractor and other stakeholders. We develop processes to measure physical work in place, so that progress can be measured and tracked, ensuring draw requests are in line with the progress of the work.
Draw Documentation Review
Reviewing all construction draw documentation to help safeguard lenders from surprise liens and claims. We confirm that lien waivers and other payment documentation are accounted for and all vendors have been paid. A single mistake in a loan disbursement can be disastrous to all the parties on the project. We work diligently to prevent that from happening.
We also analyze change orders against the budget to verify that it is appropriate and that additional unnecessary charges are not included. This analysis helps identify budget variances and prevents an unforeseen shortage of funds at the end of the project.
After completion of a site inspection to verify the progress of the work, we work diligently to approve the payment request or suggest changes quickly. Our goal is to always process and approve disbursement requests within five days of submission of a complete draw package.
Why Use Gentile Consulting Group’s Funds Control?
Our years of experience and expertise ensure that lenders receive accurate reports and help prevent mistakes. We have decades of construction and home building experience and understand the needs of both lenders, borrowers, and general contractors. Lenders want to fulfill their fiduciary responsibility and be certain they are not releasing funds before work is complete. Borrowers are looking for payment speed, accuracy, and responsiveness.
We work hard throughout Northern New Jersey to give our clients the experience they expect. That is why we can include clients like PSE&G, Merck, Alstom Power, Aries Clean Technology and more. If you are interested in our work, check out our typical engagements.
We offer full portfolio and individual project reviews, services which other fund control companies do not provide. Our team has extensive construction experience in residential, commercial, industrial and land development projects, and is able to spot budget anomalies and project funding issues before they happen.
We help lenders identify project and borrower risk. We will let you know when additional safeguards are necessary. Working together with borrowers, contractors, and lenders, we help ensure everyone finds success with the project.
Are you a busy lender managing multiple construction projects? We invite you to join our team today! Every project gets senior management attention and we treat them like our own. It is our mission to be responsive, accurate, transparent and deliver as promised.
Get started with Gentile Consulting Group, contact us today!