When it comes to providing affordable housing units, there is a lot of direct social benefit to communities, while offering a financial opportunity for investors, syndicators and lenders. But the opportunity comes with significant risks due to the unique requirements for these projects.
From the language in the construction contract to the necessity of ensuring construction is performed exactly according to plans and specifications, and in a timely manner, investors, syndicators and lenders have a lot to gain from working with a quality construction consulting company like GLE. Here’s why.
The Plan and Cost Review (PCR) Is Your Best Friend – Or Worst Enemy
The Plan and Cost Review (PCR) helps protect investors and lenders from unnecessary risk by ensuring that their development partner’s contractors are legally bound to perform the work in accordance with the construction documents, in a timely manner and for a reasonable cost.
For federally subsidized Affordable Housing, the PCR is especially critical because certain project features and construction components are required by the agencies responsible for dispersing and overseeing funds. A sloppily performed PCR can lead to substantial delays and cost increases during construction, or even a complete loss of funding if the project is unable to meet the requirements.
Read more about how to choose a quality PCR firm here.
Construction Monitoring Inspections Are More Critical–and More Demanding–for Affordable Housing Development
While Construction Monitoring Inspections are critical for any development project, they are both more critical and more demanding for affordable housing projects.
Not only must your construction consulting firm monitor the standard 3Cs (Cost, Constructibility, and Contingencies), but also they must ensure that a host of additional criteria are met during the construction process:
- The project is proceeding in accordance with any place-in-service or funding deadlines
- Construction is being appropriately managed and subcontractors are performing adequately
- Appropriate quality materials are incorporated into the project
- All accessibility requirements are met
- All specified features and amenities are included and meet the specifications (for instance, energy-efficient components)
What to Look for in a Construction Review Partner for Affordable Housing Development
When it comes to the demands of affordable housing construction consulting, you can’t afford to hire just anybody who advertises their services. The demands of affordable housing construction require true expertise and a multi-disciplinary approach that not everyone who works in the industry can provide.
Choosing the right construction consulting firm upfront will save money, time, and headaches throughout the process. Look for a firm with extensive experience in the affordable housing industry, with a track record of completing many successful, profitable projects over a long history.
You should expect such a firm to bring multi-disciplinary expertise and a regional team that can be on-site as often as necessary to perform inspections and help your project stay on track and meet specifications in a timely manner.
Timeliness is especially important in affordable housing construction, as the costs and penalties for delays can be steep. Timelines are a critical aspect of the funding process, and as such, any deviations from the timeline can result in loss of funds and revenue. For this reason, make sure you’re working with a review firm that can meet your demanding timeline and be on-site immediately when needed.
GLE has been performing PCRs and construction inspections and consultation for affordable housing projects all over the Southeastern United States for over 10 years. We are proud of our track record and our capabilities. Contact us today to speak with one of our affordable housing experts.
