Chapter 5 - How the Consultant Functions in the Requisition Process

Abstract

There is need for a professional objective review of drawings, specifications, and construction loan commitments and payment requests to fully protect the lender. The construction consultant (consultant) serves the lending institution by examining the conceptual design and specifications or engineering soundness and compliance with governmental regulations, and by making a study of cost comparables for similar projects, in addition to a trade-by-trade breakdown. Few facilities management activities have as much potential to influence facilities improvements and funding as regularly scheduled inspections. The best way for a lender to mitigate the risk and protect against unforeseen losses is to require adequate insurance coverage on the improvements. Verifying system performance is based on comprehensive functional testing and measurement. Building commissioning provides benefits such as a smoother construction process, reduced operation and maintenance costs, lower energy costs, and satisfied building occupants and tenants. Consultants typically have to warrant that other than the relationship contemplated by the agreement with the client one has no financial interest in the project or with any persons or organizations guaranteeing the loan, the architect of record, the engineers, the contractor, or subcontractors.