Developers, REIT’s, and Lenders leveraging USDA, B&I, SBA and Private Funding Nationwide
Funds Control is a risk-management process required by lenders, sureties, or investors. It is used in construction and real-estate projects to ensure that money provided for a project is spent exactly as intended.
Due Diligence and Project Review
When financing projects outside of your local market, it becomes especially difficult to know if a contractor is qualified to perform the work, and above all, if the project is on track for a successful completion. Axius funds control and project evaluation services provide a comprehensive review of the builder’s qualifications and an analysis of the project’s probability of success. The construction process requires extensive review of the following key areas:
- Initial Project Review
- Project Entitlement and Permitting
- Environmental Reports
- Contractor Qualification
- Contractor Financial Statements
- Construction Agreement
- General Conditions
- Subcontracts
- Construction Plans
- Construction Schedule
- Utility Commitments
“It is my pleasure to recommend Axius. We have been using their construction funds control services since 2006. They are willing to take the time to discuss our projects in the planning stages; resulting in higher percentages of loan approvals.” RL Colonial Capital
Project Risk Management
Most problems develop well in advance of a project going sideways. Axius manages the entire payment application process for you to help reduce overhead and time.
- Contractor and Key People Coordination
- Pay Application Review
- Progress Analysis and Front loading Review
- Budget Analysis and Reconciliation
- Change Order Management
- Materials and F,F,& E Management
- Site Inspections
- Payment Disbursements
“It has been great to see our companies continue to grow and prosper. I’ve thoroughly enjoyed our construction financing discussions, and I very much appreciate your high level of professionalism, strong work ethic, and commitment to excellence.” DM Trust Bank
Construction Control Program Levels
Construction Project Monitoring
Construction monitoring helps our clients not only to enjoy safeguards that are put in place but also to take comfort in knowing that their portfolio has professional oversight and cash flow protection. Furthermore, critical points of success are established and then evaluated against the overall project completion. Construction Monitoring involves project coordination with the contractor, budget analysis, contractor draw application analysis, subcontractor application analysis, lien waiver reconciliation, and funding recommendations.
Construction Funds Control
Funds control is a set of strategies designed to evaluate and audit the overall construction progress and draw cash flows during the construction process. Controlling a project early reduces risks that are common in construction projects. Our clients receive comprehensive progress review reports from Axius recommending funding.
- Initial Project Reviews
- Receiving and processing draw voucher requests
- Verifying invoices and suppliers
- Lien waiver management
- Progress Inspections
- Budget line item review
- Municipal permitting, inspection and code adherence verification
- Budget analysis and predictive review
- Direct Funds Disbursement From Trust Account Where Contracted
- 1099 Reporting
- Comprehensive Funds Control Analysis Report with Recommendations
Project Completion Management
Axius’ Project Completion Management Program (PCM) has a proven track record in successfully managing and controlling major projects. Our PCM program opens up diverse opportunities for lenders to participate in USDA, B&I and SBA sources of financing. We put safeguards in place at the beginning stages in order to protect against project default. These safeguards help to ensure that the contractor’s obligations are completed, the construction progress continues, and the deliverables of a project are in place. Some key success areas focus on protecting against default by working closely with the prime contractor on project completion efforts. We compliment the process by prioritizing communication of project progress with owners and lenders. During the course of completion, Axius also evaluates subcontractor management, materials delivery and installation, and final approvals. Our goal is the same as all parties to the project which is settling any outstanding payments or obligations and ensuring a smooth transition to project closure.
