Funds Disbursement

For construction projects where contractor risks are greater than normal or for SBA requirements, CDCC offers an extension of their Construction Monitoring Services: Funds Disbursement. Many contractors who construct smaller projects are not in a position to be bonded by a reputable company. In these cases, having CDCC perform the function of disbursing funds to individual subcontractors and suppliers creates detailed and secured control of project expenses, lien releases, contract reviews and budget tracking. CDCC writes the checks directly to the subcontractors and suppliers from funds deposited into a special construction account controlled by the bank. Funds Disbursement Services incur the the following:

  • Pre-construction meeting with Contractor, Bank, Borrower and CDCC to cover documentation requirements
  • Receipt and analysis of Funds Disbursement documentation from Contractor
  • Detailed monitoring of Construction Subcontracts and Purchases in relation to Construction Budgets and the Applications for Payment
  • Visit to the Construction Site by a Trained Professional
  • Review and Analysis of each Payment Application
  • Computer Analysis of the Contractor’s G702/3 Continuation Sheet for:
    • Budget Revisions or Corrections
    • Change Orders
    • Adequate Funds to Complete the Work
    • Calculation and Transcription Errors
    • Percentage of Completion of each item
    • Retainage Errors, Releases, or Revisions
    • Stored Materials (on and off site)
    • Proper Funding Credits to Subcontractors and Suppliers
    • Coordination of Funding among Bank, Owner and Contractor
    • Required Signatures and Approvals
  • Review and Analysis of Lien Waivers and Releases
  • Tracking and Proper Documentation of Stored Materials (on and off site)
  • Comparison of Work to Required Progress Schedule to:
    • Confirm Target and Completion Dates
    • Review of Bar Chart, Pert Chart, CPM Schedules
    • Track any potential or actual Liquidated Damages
  • Review and Analysis of Change Orders for:
    • Analysis of affect on Loan Collateral
    • Confirmation of Change Order Scope and Costs
    • Required Signatures and Approvals
    • Proper inclusion into the Contracts and Budgets
  • Materials Testing Reports for:
    • Proper approvals of material adherence to Specified Quality
    • Notification and Tracking of low quality materials
    • Notification of Contaminated Materials brought from off site.
  • Comparison of Work for compliance to Plans and Specifications
  • A full written Report of our findings including:
    • Observations of our Site Visits
    • Discussion the items noted above
    • Extensive, documentary photographs of the Site and Buildings from our visit.
    • Copies sent to Owner, Contractor, other lenders on interested parties
 

Guarding the interests of Real Estate Lenders since 1985, with Integrity and Professionalism.