AEI will review and evaluate the construction budget for the project. AEI will use construction costs analysis tools such as R.S. Means Building Construction Cost Data and R.S. Means Square Foot Cost Reports along with internal data to provide a cost comparison of the proposed budget with typical industry costs. The cost review will include the following:
- Identification of the budget structure, such as Guaranteed Maximum Price, Stipulated Sum, Cost Plus Fixed Fee, or Time and Materials.
- Risks associated with the budget structure will be identified to support the Lender’s risk management review and evaluation.
- Comparison of the project construction costs to current industry construction costs for projects of similar size, construction type, building use, and region.
- Recommend review and if appropriate, an adjustment to specific line item costs, overhead & profit, hazardous material management, and contingencies if such costs appear contrary to industry standards.