During the Construction Phase, AEI is tasked with preparing a Project Status Report (PSR). A PSR is prepared in conjunction with a pay application. A physical site visit is performed to independently verify the percentage of completion of the reported construction contained within the pay application during the draw request period. The scope of our PSR includes the following:
Review of Pay Application
As part of the PSR process, AEI will review the progress of construction and the payment application for uniformity and overall appropriateness. We will review the construction draw requests from the contractor and developer and ascertain if the work for which funds are requested have been completed. We will review conformance of the payment application with the provisions of the construction contract and plans and assess the overall completeness of the work. The level of project completion will be reviewed as well as the status and inventory of materials stored on and off site. When change orders arise, we will disclose all pending and executed change orders and verifiable budget overruns. If necessary, AEI can review and comment on any shared information from municipality or other inspections, such as plans, permits, and final inspection. We will keep the client up to date on the overall level of completion, report any potential changes to the expected completion and determine if the contractor is in conformance with the construction schedule. Finally, AEI will comment on whether pay application invoices are accompanied by necessary conditional and unconditional lien releases.
Physical Site Visit
AEI’s PSR includes a physical site visit to observe the construction work in progress, the overall visual quality of the work performed and a review of the current pay application. The frequency of the physical site visits is based upon the complexity of the project and/or the level of construction activities at the site. However, physical site visits are typically performed on a monthly basis. If funding of off-site stored materials is provided for within the contract, a separate visit may be required and can be performed at the request of the Client. The site visit typically includes an interview with the on-site construction superintendent to discuss construction progress, percentage of work completed, change orders, and the future schedules for completion.
The PSR is generally prepared within 5 business days of the completion of the physical site visit. The PSR consists of a report summarizing site observations, interviews and review of payment related documents along with photos of the site and progress of the work. AEI will present a list of items missing from the pay application and will identify issues that may impact the successful on-time/on-schedule completion of the project along with recommendations for addressing those issues. AEI will offer an opinion as to the appropriateness of the draw request or payment application.
