Reduce Budget Risk by Outsourcing Budget Monitoring
As the economy continues to rebound, the construction market is progressively getting busier. Although this is exciting news, there are some downsides to it. Due to the overwhelming amount of permit and building requests, cities are backlogged in their approval process, which slows things down quite a bit. This causes a backup with subcontractors as well because they might not be able to start a new job until the previous job is finished, which then pushes back the timetable for the new job.
To help remedy these frustrating situations, Quick Draw Fund Control offers Budget Review and Cost Analysis to our clients. The ultimate goal with Cost Analysis is to present the lender with all facts about the project so that they can make an informed decision. In our analysis, Quick Draw Fund Control includes:
• A thorough review of the borrower’s construction plans, specifications, and budget.
• Soft Costs such as city fees, architects and engineers, and off-site improvement requirements.
• An unbiased opinion about the entire project. This ultimately helps the lender in the decision and underwriting process.
• Over 60 years of combined experience. We have experience in both accounting/finances and construction/home building. This perspective is pivotal, as we know what it’s like to be on both sides.
Because our Cost Analysis is so thorough, we are able to identify trends within a budget as it relates to market conditions. We often notice trends where there are cost overruns, and although they are usually unanticipated, they can impact the approved budget. We can help both the lender and borrower understand the need to keep a close eye on these types of things, as they can cause a potential setback during the course of construction. When an unanticipated cost arises, fund control companies such as Quick Draw help clients by analyzing their budget to see if there are any line items that can be adjusted. For example, maybe they budgeted $20,000 for concrete but only spent $15,000. That extra $5,000 can be allocated elsewhere. This type of fund control analysis helps reduce risk and keeps the project moving and on schedule.
Quick Draw Fund Control brings together years of financial and construction experience to offer both borrowers and lenders a positive fund control experience. Contact us today for more information!