Services

Development Due Diligence

In today’s economic environment, investing in new development carries both opportunity and inherent risks. TPSi can assist a prospective joint venture partner or lender with the identification and analysis of risks associated with a development project – whether in the planning or pre-construction phase or mid-construction – by conducting a thorough investigation of all critical aspects of the project and by providing recommendations on how to mitigate these risks. TPSi provides due diligence research and evaluation prior to investment for all types of projects, including office, hotel, residential (both apartment and condominium), and mixed use projects.

TPSi’s comprehensive approach to Due Diligence includes the following services:

• Review of all plans, specifications, reports, correspondence, and prior meeting minutes to ascertain progress, quality, and possible issues
• Review of the capabilities of the development team and evaluation of current workload, personnel structure, relevant experience, and overall ability to formulate, design, and execute the construction of a project of the proposed scale and complexity
• Review of all consultants’ proposals and contracts as well as any pre-construction agreements and construction contracts
• Participation in initial meetings to determine the status of design, permitting, and overall team structure as proposed by the developer
• Review of the development budget for feasibility and completeness
• Analysis of construction budgets, comparisons, and pricing estimates and preparation of a detailed cost spreadsheet, including projected construction budget
• Review of overall development and construction schedules
• Review of and advise on any value-engineering and value-added opportunities
• Review of available geotechnical and environmental information and provide comment on areas of concern

For projects already under construction, Due Diligence services also include:

• Detailed review of current construction progress and inspection to confirm that work has been completed in conformance with approved plans and design intent
• Review of pay applications, change orders, and proposed cost changes to ascertain if the projected balance to complete is sufficient to achieve the desired product