21 Oct The importance of your project monitor
A Project Monitor is essential in any development. They monitor the scheme and report on any potential issue that could affect the project, whether this is in regard to cost, programme or statutory issues. Effective communication with all contributing parties to identify any potential problems or pitfalls in the development process is therefore paramount.
But what exactly do they do? Take a look below at a high-level summary of responsibilities and also who reports into them to ensure that the development is executed as smoothly as possible.
The role of the Project Monitor
The Project Monitor’s role is one of an investigator and advisor to the lender, they identify the risks associated and highlight the potential red flags which could prevent a Borrower from successfully completing their development.
They are not responsible for overseeing delivery, or for driving and instructing any of the team to ensure timely completion but provide an independent and impartial assessment of the project progress. A Project Monitor does not take away any of the responsibilities of the developer, they are purely involved to assess the progress of each scheme. It is highly important as a developer however, to have a good relationship with the Project Monitor so that problems are identified and subsequently fixed in as short a timeframe as possible.
The Project Monitor would typically be engaged by the Funder to produce an Initial Appraisal and assess the viability of the scheme from a construction perspective. The main points that would be assessed would be:-
- Costs – construction and other costs such as professional fees; CIL / S106 payments
- Construction team
- Statutory requirements
- Review the Risk Register that identifies all potential risks
Assuming that the project proceeds to construction, the Monitor would be expected to visit site monthly to review progress in terms of construction and also statutory requirements including planning, Building Control etc. The Project Monitor would produce a Progress Report and would include updates on items such as:-
- Progress against programme
- Statutory updates – Building Control compliance
- Insurance updates including Warranties
They will liaise with the necessary team partners to compile the report. This will include liaison with the Building Control Officer. This is a key element as they will ultimately be signing off the development at conclusion, so the property(s) can be occupied.
As well as the Building Control inspector, New Build dwellings will often be subject to a Building Warranty. This is often a requirement of Mortgage Lenders who will seek a Warranty for the purchaser. The Project Monitor will therefore liaise with the Warranty Inspector to seek updates and confirmation that they have seen the necessary works and have any warranties offered by the sub-contractors in order to obtain the final certificate.
Finally, at project completion, a Completion Report will be produced for the Funder that will document all of the necessary files that would be required to occupy and / or sell the development. These will include:-
- Statutory and non-statutory consents (planning, building control etc)
- Defects schedule
- Final account (financial appraisal)
- Health & Safety file
- Building owner’s manual
- Operations and maintenance manuals
- Transfer of insurances from construction to buildings insurance