Development and Fund Monitoring
Property development can be a risky business and before banks agree to fund property developments, they must have a good understanding of the construction aspects of the project in order to weigh up the risks that might impact on their loans.
Having committed to funding a development and seeing it get underway, the project must be carefully monitored with regular site visits made in order to pick up any key issues and make sure they are dealt with.
Dealing with key issues and making sure they are dealt with is an important aspect of the service Monaghans provides. Our people are trained to identify key issues and, importantly, to offer solutions, not just report the problem.
Prior to the fund committing to lend to the development we prepare an Initial Audit Report to inform the fund of the status of key development issues:
- Development Cost
- Programme and Project Development Timelines
- Drawings and Specifications
- Planning and Statutory Consents
- Site Investigations and Survey
- Procurement and Building Contract Strategy
- Consultant Appointments
During the construction phase we then monitor the developer’s compliance with the terms of the loan facility and contract requirements and proactively keep the funder informed, particularly of any changes to the risk profile throughout the build period, through our regular Progress Reports which report on the status of key development issues through a review of:
- Risk Management
- Performance Management
- Development Budget
- Programme and Progress
- Design Quality
- Statutory Compliance
Our reports contain informative introductions and executive summaries, are RICS best practice compliant and can be adapted to respond to the particular requirements of the fund.
Our team has extensive experience in this area of work. We are on the approved panels of many of the development lenders in the UK. We liaise with banks, their lawyers and valuers at every stage of a development and every project is led by one of our senior staff. It is this close collaboration, and the direct involvement of senior people who have knowledge of the whole development process, which supports our Development and Fund Monitoring service.
Building strong relationships with our funder clients is of paramount importance and we actively maintain strong communication channels with them through the whole development process.
Our Development and Fund Monitoring offering is underpinned by the following processes and services:
- Initial Audit Report
- Progress Report
- Development Management
- Technical Investment Risk Management
- Specialist Services
Monaghans can also assist in relation to distressed projects or developments which can be caused by a breach of contract or the failure or insolvency of key parties to the contract.