Project Monitoring
What is Project Monitoring?
Project Monitoring is a tool that allows to know the destination of the provisions of the developer's loan to guarantee the completion of the works of a given development.
Project Monitoring aims to analyze and control the construction project from start to finish, from an administrative, technical, and economic perspective.
The work of Project Monitoring seeks to ensure that there is sufficient capital available to complete the works, delineating the amounts and concepts to be financed and those that must be undertaken with own funds.
It is a continuous process of tracking and evaluating the progress of a project. It involves collecting, analyzing, and reporting information on various aspects of the project, such as work progress, compliance with deadlines, resource usage, and budget. The main objective is the early identification of deviations from the original plan so that corrective measures can be taken to ensure that the project stays on track towards achieving its objectives.
The monitoring process will result in a improvement in decision-making by providing accurate and up-to-date data on the project’s status at any given moment, helping to ensure that it remains aligned with its objectives and goals.
Furthermore, when it comes to Green Loans or Sustainable Loans, at Gloval we have incorporated our own verification system that allows us to know, from start to finish, whether the project meets the established standards to qualify for a green loan and if the materials and methods used during the execution of the works comply with those standards.
The main advantages of Project Monitoring are:
- It increases confidence between the financial entity or investor and the developer, making it possible to access financing.
- The financial entity relies on the information provided by Project Monitoring as an independent third party.
- The developer receives credit disbursements in a timely manner to be able to make specific payments to their suppliers.
- Timely and proper payment to suppliers gives them greater comfort, which is also a key point in the developer’s negotiations with construction companies and technicians.
- It provides greater control over viability and serves as a tool to help manage risk and facilitate decision-making.
- It facilitates the understanding of the destination of each credit disbursement, ensuring that they are directed towards a specific work.
- The periodicity of Project Monitoring reports (usually monthly) allows for an exhaustive understanding of the work and helps anticipate issues that could affect financing.
The parties involved in a monitoring process, such as the developer and the financial entity/investor, seek the success of the project. Project Monitoring provides them with the necessary transparency to understand how the development is progressing and whether expectations are being met, allowing decisions to be made accordingly to keep the project on course, thereby fostering confidence among all involved parties.
Who needs a Project Monitoring?
THIS TOOL IS REQUIRED BY THE FINANCIAL ENTITIES AND INVESTORS AND IS FOR INDIVIDUAL DEVELOPERS OR LARGE OR SMALL PROPERTY DEVELOPERS
- Project Monitoring is intended for residential, hotel, industrial, logistics, infrastructure and urbanization developments, etc.
- Financial Institutions and Investors: to ensure that credit drawdowns are used only for the development being financed.
- Developers, regardless of their size: it provides them with a centralized platform to monitor and coordinate the project. It is the tool for connecting and translating the language and way of understanding the promotion from the developer’s and builder’s point of view, to the language and way of understanding the real estate product used by the Financial Institution/Investor.
- Self-developers, who lead the construction project and the real estate development on their own: it allows them to supervise every aspect of the development, from initial planning to completion.
- Cooperatives: in a situation similar to that of the self-promoter, Project Monitoring facilitates the manager’s relationship with the financial entity or investors when making payments and follow-ups.
In addition, more and more financial institutions have among their products green loans, both for developers and for individuals who want to improve the efficiency of their homes and to verify compliance with their standards, require a Project Monitoring to monitor that the starting data are as stipulated and that the works are carried out according to the provisions of the project, with sustainable and energy efficient materials.
How do we do Project Monitoring?
WITH SPEED AND CONTROL FROM THE MAIN OFFICES AND FROM THE ACTUAL BUILDING SITE
At Gloval, we carry out an exhaustive economic monitoring of real estate developments, ensuring an agile and efficient control from our headquarters and with local technicians who are experts in the construction particularities of each location.
Throughout the entire process, it is essential to continuously monitor the economic and technical aspects of the project. This includes monitoring income and expenses, analyzing deviations from the initial budget, meeting deadlines, assessing project profitability, warning of possible risks, and monitoring the evolution of sales.
To do so, we perform the following actions:
- An initial report is prepared that includes all the costs and expenses of the development, from the purchase of the site to the delivery of the keys to the future buyer.
- During the development of the works, work execution monitoring reports are issued.
- The pace of sales is also monitored for an adequate control of the project’s cash flow.
01
Contracting
Personalized Service
- Standard range
- Extended range
02
Initial report
Analysis of the project, the feasibility of the development, expenses and payments incurred so far, licensing and contracting situation…
03
Follow-up reports
Site visit by local technician, updating, sales, compliance with construction deadlines, executed-certificate, invoicing review, verification of payments made…
04
Final Report
Verification of completed work, review of final invoicing status and pending payments, verification that all documentation for the LPO/DR application is in place…
Frequently Asked Questions
On the one hand, the interim certificate is a certificate signed by the Site Manager. During an appraisal, we also refer to the interim certificate as the intermediate appraisal of the development to check its progress. Nevertheless, neither of these go as far as the Project Monitoring where we analyse the development from an administrative, technical and financial point of view.
Yes, although this should be improved. At present, these are two different documents used for two very different purposes. The first controls and warns about deviations in the project, whereas the interim certificate is still used for stage payments to the developer. We suggest you ask your bank about this.
In order to prepare the reports we will need to have the technical, financial and legal documentation related to the project. Once the procedure has started, our technicians will request specific documentation depending on the characteristics of the property and the stage of the work. The most common documentation is the complete execution project, contract with the construction company, contract budget broken down by chapters and items, building permit, invoicing related to the project and the execution of the work (technical, engineering, insurance, industrial, construction company, etc.).
No, we also monitor projects of commercial, industrial, tertiary, hotel, etc. buildings, and not only new buildings, but also refurbishment, rehabilitation, adaptation or change of use projects.
The purpose of an appraisal is to determine the market value of the property, while Project Monitoring monitors the works from an economic-administrative and technical point of view, verifying that the credit provisions are used only for the monitored development.
The Project Manager is the technician hired by the developer responsible for planning, managing and executing the project in relation to the other building agents, while Project Monitoring is a figure independent of other agents who provides information to the client on the evolution of the loan provisions of the project with respect to the planned, at a technical and economic level.
Project Monitoring analyzes the contract with the builder, deadlines and development of the work, and in cases where the financial institution requires it or the developer wishes to contract it, the study can also be extended to a follow-up of the debt status with subcontractors and the administration.
No, in no case does the figure of project monitoring perform any of the functions that the LOE includes for the Project Management or for the Execution Management.
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