While the Cardinal Consulting, Inc. primary responsibility to the lender is to help protect the investment; the secondary responsibility is to act as the lender’s agent to the developer and contractor. Cardinal Consulting, Inc.’s’ years of experience allows the precarious balance between lender’s protection and developer service. In competitive markets, construction lenders eagerly seek quality developers and contractors. Repeat business by these quality personnel is key to a lender’s profitability in competitive times. Cardinal Consulting, Inc.’s professional, knowledgeable, and fast service will keep the quality projects within a lender’s portfolio.

In slower markets, an close watch on development projects is required due to the increased risks. In addition to the lenders, the developers, contractors and subcontractors all appreciate the added security of Cardinal Consulting, Inc.’s' involvement in a project. Potential problems with budgets, timing and project feasibility that are discovered early can be resolved, allowing projects with difficulties to be completed. Problem projects not reviewed by Cardinal Consulting, Inc. can be assessed and a corrective course of action is recommended and implemented. Cardinal Consulting Inc. works with the lender to determine the lender's oversight scope required.

Fund Control Services can be provided on projects. During these services, Cardinal provides a more hands on services regarding the controlling of the project funds. Typically, Cardinal will track the funding of the project and prepare a list of checks for the project for the contractor and subcontractors. Depending upon the requirements of the project, typically Cardinal will track the subcontractor invoices, verify lien waivers, budgets and bank balances. Many times these fund control services will be utilized where greater control of the project is required or some party does not have the capabilities to do these services by themselves.

Services Provided

Cardinal Consulting, Inc. provides in-depth, professional reviews for a vareity of construction projects. In addition to our tangible reports, we feel that it is our responsibility to help work out problems with the projects, in cordination with our clients. Services provided include: Property Condition Assessment Reports, Probable Maximum Loss Reports (Seismic Reviews), Initial Project Reviews (including estimations), Construction Disbursement Controls (Draw Administration).

Property Condition Assessments provide a lender or owner a due diligence review of an existing property. A review of the current condition of the project, recommended improvements, and projected cash flow requirements for facility management is provided. Reviews of individual properties or portfolios can be completed.
- Onsite property are performed to determine the physical condition of the property. The observable quality and current condition of the facilities are described subject to industry limitations.

Items of concern, potential problems and deferred maintenance items requiring immediate repair are identified, and costs for repairs are provided.

If required, a detailed estimate of the cost to maintain the project can be established.

A written report is provided which indicates a detailed description of the project and clearly defines recommended improvements. Color photographs of the project are provided for reference. (Cardinal does not provide a guarantee of management costs, do invasive testing and all reports are subject to report limitations.

Probable Maximum Loss (PML) reports assess the seismic risk to a structure based upon the type of construction, condition of the structure, type of soils and seismic hazard to the property. These reports are utilized in the determination of the risk of ownership for a structure.

Initial Project Reviews (Preconstruction Reviews) provide the lender with a comprehensive review of the construction project to help determine if: the project is feasible, the budgets are reasonable, the recommendations of other consultants’ report are included in the design of the improvements, and to help expose design problems.
- A cost estimate is prepared to provide an opinion of whether the proposed budget appears reasonable to complete the project as proposed. If requested, this budget is compared with the lender’s proposed budget to provide an opinion of whether is appears sufficient funds are available. Budgets likely will change over time and this helps to provide a framework to review such changes.

Drawings and specifications are reviewed for general constructability and design.

Available contracts are reviewed for any special conditions that may affect the lender, and to determine how contract amounts are reflected in the proposed budgets.

Review third party documents available such as Geotechnical Reports and Environmental Reports to assure recommendations are utilized in the design of the project.

Construction Disbursement Controls (Draw Administration) are a measure utilized to aid in control of construction loan funds. Cardinal Consulting, Inc. provides the lender with a review of the project in progress, helps to assure that funds are utilized for the subject project, procures required documentation per loan requirements, determines if the funds requested are appropriate for work in place, and reviews change orders or budget changes. These detailed reviews allow for timely solutions for problems encountered. Reports allow lenders to be familiar with their projects without having to visit the site.
- A physical inspection is performed at the site, generally once a month. In the report provided, a detailed description of the work in place, photos and a percentage of completion for each portion of the project are provided.

The project is reviewed for completeness (% of Completion). Construction personnel are interviewed to determine the status of the project, the project schedule and current or pending problems or changes.

Documentation is reviewed for appropriateness. Budgets, funds requests, lien waivers, contracts, and invoices can be reviewed each month to give funding recommendations and to confirm the status of the project, depending upon the client's requested level of review.

Please note that Cardinal's services are tailored specifically for each client based upon guidelines provided by the client. Typically the client determines the scope of information to be provided and reviewed by Cardinal, and such information varies greatly from client to client and project to project. The cost and scope of Cardinal's services do not include at-risk construction management services for the project.

Working Through Problem Projects

During problem project work outs, a review of the existing project, audit of the project files, and review of the budgets can all be reviewed to help the parties determine the best course of action for the project.

Cardinal can either work as a receiver or with a receiver to help to work out problem projects. This would include phases from managing the risk to acting as a general contractor. Work varies on projects from securing, to collecting rents, working with government authorities on closing up projects, managing Home Owners Associations and a myriad of other tasks. We have completed this on both commercial, residential multi-family, residential single family as well as single family tract homes. Our practices help to reduce immediate risk as well as limit damages for all parties during difficult projects. We are involved in or have completed over $72,000,000 in receiverships.

Lender Consulting

We complete loan portfolio or project-specific loan reviews as a pre-audit, audit, or to give management a comfort level of their current portfolio. We also meet with lenders to review existing loan procedures in regards to the market conditions.

General Contracting

Cardinal is a licensed general contractor.

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Services Provided

(C) Cardinal Consulting, Inc. 2013