Construction Loan Monitoring ensures funds are disbursed appropriately during a construction project. It involves reviewing draw requests, inspecting the site for progress, and verifying compliance with the project scope, protecting lenders from financial risks.

A Plan and Cost Review evaluates a project’s plans, budget, contracts, and scope to ensure feasibility and alignment with industry standards. We assess risks, verify costs, and opine on the feasibility of the project.

Our standard document request includes architectural, civil, structural, and MEP drawings, general contract, architect's contract, existing conditions reports, project budget, and the schedule. Additional documentation may be requested depending on the project scope or client requirements.

We review each draw request to ensure that the requested funds align with work completed on-site. This involves an inspection walkthrough, OAC meeting attendance, and review of draw documentation including the G702/G703, invoices, change order log, and more.

Depending on the project’s complexity, we aim to deliver Plan and Cost Reviews within 5-10 business days after receiving the required documentation. We understand that rushes occur, and are happy to accommodate expedited turn around times by request.

Reports typically include a project status summary, draw request review, lien waiver verification, stored materials status, critical path updates, and recommendations for risk mitigation.

Site visits are usually conducted monthly or aligned with draw requests, depending on the project’s pace and lender requirements.

Yes, our team supports construction loan monitoring nationwide, leveraging our satellite offices located across the country. Our offices include Annapolis, MD; Austin, TX; Boston, MA; Charleston, SC; Chicago, IL; Columbus, OH; Denver, CO; Greensboro, NC; Nashville, TN; New Jersey; New York, NY; Palm City, FL; Palm Coast, FL; Queensbury, NY; Rochester, NY; Sacramento, CA; San Diego, CA; State College, PA; and Washington, DC.

A lien waiver is a document from a contractor or supplier waiving their right to file a lien against a property once payment is received. It protects owners and lenders from future claims.

There are four main types: conditional and unconditional lien waivers for both progress payments and final payments.

We review lien waivers for accuracy, ensuring they are properly executed and match the amounts in the draw request.

Missing or incomplete lien waivers may delay funding or indicate potential payment disputes. We flag these issues and work with stakeholders to resolve them.

Requirements vary by jurisdiction, but some states mandate notarization for lien waivers to be enforceable.

The AIA G702 form, also known as the Application and Certificate for Payment, summarizes the contractor’s request for payment, including completed work and stored materials.

The AIA G703 form, also known as the Continuation Sheet, provides a detailed breakdown of work performed, materials stored, and the status of individual line items.

These forms provide transparency into project progress, helping lenders verify that payments align with work completed and materials stored.

We verify the accuracy of work-in-place percentages, stored materials, and compliance with project budgets before recommending payment.

Discrepancies in work-in-place percentages, missing backup documentation, and incorrect stored materials values are common issues we flag during reviews.

A change order is a formal amendment to the original construction contract, detailing modifications to the scope, cost, or schedule.

We review change orders for reasonableness, compliance with the contract, and potential impacts on the project’s budget and timeline.

Frequent or unapproved change orders can lead to budget overruns, project delays, and disputes among stakeholders.

Many lenders require approval for change orders that significantly impact cost, scope, or schedule. We facilitate this process as part of our monitoring services.

We track and evaluate all change orders, ensuring they are justified, properly documented, and aligned with project goals.

A submittal log tracks project documents submitted by contractors, such as shop drawings, product data, and samples. It ensures compliance with design specifications and project requirements.

We check the log for completeness, accuracy, and timeliness, ensuring all required submittals are approved and on schedule.

Stored materials are construction materials purchased but not yet installed. They are typically stored on-site or in a secured facility and may be eligible for payment with proper documentation.

We confirm quantities, storage conditions, and compliance with the project contract. Photos and inventory logs are reviewed as part of the verification process.

Risks include damage, theft, or misallocation of materials. We mitigate these risks by ensuring proper storage and documentation.

Work-in-place refers to construction tasks completed and installed on-site. Non-work-in-place includes materials purchased but not installed or work not yet started.

Differentiating ensures that payments are accurately aligned with project progress and prevents overpayment for incomplete work.

We conduct site inspections to confirm progress and compare observations against the contractor’s reported percentages in the draw request.

We flag the issue and recommend adjusting the draw amount to reflect actual progress, protecting lenders from overpayment.

Delays in work-in-place can affect the critical path, leading to schedule overruns and potential cost increases.

The critical path represents the sequence of tasks that determine a project’s overall timeline. Delays on the critical path directly affect the project’s completion date. A good example is weatherproofing of the building, as this can delay MEP trades.

We analyze the project schedule, monitor task progress, and identify potential bottlenecks that could delay critical activities.

Risks include late material deliveries, labor shortages, weather impacts, and unapproved change orders. We monitor these factors to minimize disruptions.

Our team offers guidance on energy efficiency, sustainable material selection, and design strategies to help meet LEED requirements.

Absolutely, we assess existing buildings and recommend upgrades to improve energy efficiency and reduce environmental impact.

Local Law 97 is part of NYC’s Climate Mobilization Act, targeting greenhouse gas emissions from buildings. It sets strict carbon emission caps for buildings over 25,000 square feet, requiring owners to reduce emissions starting in 2024, with stricter limits in 2030.

We conduct energy audits, recommend energy efficiency upgrades, and provide guidance on strategies to meet emissions targets, such as retrofitting systems and optimizing energy use.

Buildings exceeding emissions limits face fines of $268 per ton of CO₂ emissions above the allowable threshold. Additional penalties may apply for failing to submit accurate emissions reports.

Compliance begins in 2024, with stricter requirements in 2030. Building owners must submit annual emissions reports prepared by a registered design professional.

Yes, we evaluate existing systems and propose cost-effective retrofitting solutions, including HVAC upgrades, insulation improvements, and energy-efficient lighting.

The Enterprise Green Communities program provides a framework for creating sustainable, energy-efficient, and affordable housing. It includes criteria for design, construction, and operation to promote health and environmental benefits.

We guide developers through the certification process, ensuring projects meet criteria for energy efficiency, water conservation, and healthy living environments.

Affordable housing projects, including new construction and substantial rehabilitation, are eligible. The program emphasizes equitable and sustainable development.

Yes, we collaborate with architects and developers to incorporate program standards into designs, ensuring compliance and maximizing sustainability.

Yes, certified projects may qualify for grants, low-interest financing, and other incentives from federal, state, and local agencies.

ENERGY STAR certification indicates a building’s energy performance is in the top 25% of similar facilities nationwide. Benefits include lower operating costs, increased tenant appeal, and environmental impact reduction.

We assess energy usage, recommend improvements, and guide clients through the certification process, including benchmarking performance using ENERGY STAR Portfolio Manager.

Commercial, multifamily, and industrial buildings, among others, are eligible. Eligibility depends on energy use intensity and building performance metrics.

Portfolio Manager is an online tool for tracking and benchmarking building energy and water consumption. It helps identify efficiency opportunities and monitor progress toward certification.

Yes, we offer monitoring and reporting services to ensure buildings sustain their performance and recertify annually if needed.

The New York State Energy Research and Development Authority (NYSERDA) provides funding, technical support, and programs to advance energy efficiency, renewable energy, and carbon reduction.

Incentives include funding for energy audits, retrofits, renewable energy installations, and high-performance building designs. Specific programs cater to residential, commercial, and industrial projects.

Yes, we assist with applications, identify qualifying programs, and provide documentation to support funding requests.

MPP offers incentives for energy efficiency improvements in multifamily buildings. It provides a pathway to achieve significant energy savings through retrofits and performance optimization.

We guide clients through program requirements, focusing on advanced design strategies, energy modeling, and verification processes to meet NYSERDA’s high-performance standards.

Communities earn recognition and access to grants by completing clean energy actions such as benchmarking energy use, adopting clean fleets, and upgrading streetlights to LED.

Absolutely. We help clients maximize financial benefits by combining NYSERDA incentives with other funding opportunities, reducing upfront costs.

Required documents typically include energy audits, project plans, and financial details. KOW ensures all submissions are accurate and complete.

Deadlines vary by program. We monitor timelines and assist clients in submitting applications on schedule.

NYSERDA offers grants and technical assistance for solar, wind, and geothermal energy installations, making it easier for property owners to integrate renewable technologies.

A Phase I ESA identifies potential environmental liabilities associated with a property. It’s typically required for commercial real estate transactions to ensure compliance with regulatory standards and mitigate risks.

We conduct site visits, review historical property records, and evaluate regulatory databases to identify potential risks such as contamination or hazardous materials.

Our PCAs involve a thorough evaluation of a property’s physical condition, including structural components, mechanical systems, and site features. We identify immediate repair needs and long-term capital expenditures, presenting findings in a comprehensive report.

Yes, we offer expedited services to meet tight deadlines, subject to availability and project complexity.

Our standard Phase I ESAs are conducted following ASTM E1527-21 guidelines, which outline the process for identifying Recognized Environmental Conditions (RECs).

Lenders and buyers require a Phase I ESA to evaluate environmental risks, mitigate liability, and comply with "All Appropriate Inquiries" (AAI) under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

AAI is a process to assess a property’s environmental conditions and potential contamination risks, required to qualify for CERCLA liability protections.

ASTM E1527-21 is the latest standard for conducting Phase I ESAs. It improves clarity and consistency in identifying RECs, HRECs, and CRECs.

The E1527-21 standard includes updated definitions, expanded guidance on RECs, and new requirements for historical research and report appendices.

Depending on the property, supplemental assessments for radon, asbestos, or lead-based paint may be required to meet lending standards.

A Phase I ESA is typically valid for 180 days. After that, key components must be updated if the report is to be relied upon.

A REC is the presence or likely presence of hazardous substances or petroleum products on a property due to release, historical release, or material threat of release.

An HREC refers to a past environmental issue that has been resolved to the satisfaction of applicable regulatory authorities and no longer poses a concern.

A CREC is a condition where contamination remains on-site under certain controls, such as a deed restriction or active monitoring.

OECs refer to active contamination or unresolved issues that require further investigation or remediation.

xamples include underground storage tanks (USTs), dry-cleaning operations, industrial activities, and evidence of hazardous material spills.

LBP, commonly found in buildings constructed before 1978, poses health risks, especially to children, if it deteriorates or is disturbed during renovations.

No, a Phase I ESA does not include physical testing but may identify the potential for LBP based on property age and use.

ACMs are materials containing asbestos, commonly found in insulation, ceiling tiles, and flooring in buildings constructed before 1980.

No, a Phase I ESA identifies the potential for ACMs but does not include sampling. A separate asbestos survey is required for confirmation.

An O&M Plan outlines procedures for safely managing ACMs in a building to prevent exposure and comply with regulatory requirements.

USTs store fuel or hazardous materials underground. During a Phase I ESA, historical records and site inspections identify their presence and potential leaks.

Vapor intrusion occurs when volatile chemicals migrate from contaminated soil or groundwater into indoor air. A Phase I ESA may identify conditions where vapor intrusion is likely and recommend further assessment.

While radon is not typically evaluated in a Phase I ESA, high-risk areas may be flagged for additional radon testing.

If a REC or other concern is found, a Phase II ESA may be recommended to further investigate the extent of contamination.

PCAs are typically completed within 10-15 business days from the time of inspection, but expedited timelines can be arranged for urgent projects.

es, we offer webinars, white papers, and consultation sessions to educate clients on industry best practices and regulatory changes. If you are interested in scheduling a webinar for your team, please email lucasg@kowbc.com

Our personalized approach, industry expertise, and commitment to quality set us apart. We work closely with clients to deliver actionable insights and solutions tailored to their needs.

Yes, we have a national presence and can support projects across the United States. Our offices include Annapolis, MD; Austin, TX; Boston, MA; Charleston, SC; Chicago, IL; Columbus, OH; Denver, CO; Greensboro, NC; Nashville, TN; New Jersey; New York, NY; Palm City, FL; Palm Coast, FL; Queensbury, NY; Rochester, NY; Sacramento, CA; San Diego, CA; State College, PA; and Washington, DC.

Every report undergoes a detailed internal review, ensuring technical accuracy and alignment with client expectations before delivery.

We work with lenders, banks, architects, developers, property managers, investors, and government agencies. Our clients range from small businesses to large institutions managing complex projects.

Yes, we have extensive experience evaluating historical and older buildings. Our team understands the unique challenges associated with these properties, such as compliance with preservation requirements.

Our standard reports adhere to ASTM standards, regulatory requirements, and best practices in the industry to ensure accuracy and reliability. KOW works with hundreds of clients nationwide, and as such our reports are tailored to meet client, or project specific requirements upon request. This includes Fannie Mae and Freddie Mac when applicable.

We leverage advanced tools like Bluebeam for document review, drones for site inspections (when approved), and AI-driven software for data analysis.

KOW is proud to be one of the few nationwide firms that does not use 3rd party inspectors. When you receive a KOW report, all portions were performed by our full-time, in-house team. Consistency is achieved through standardized templates, ongoing training programs, and a multi-level review process.