Due diligence is one of the essential procedures in any construction project, particularly large-scale commercial ones. If you need a consulting firm to conduct due diligence for commercial real estate, contact us at New Banks. We have over five decades of experience, advising thousands of clients across all industry sectors.
Is due diligence important?
Due diligence is the first step in any property development or acquisition project. In simple terms, it is a background check of the land or property to determine its suitability for your project by assessing its physical condition. Due diligence will look at everything from the quality of property management to environmental assessments of the land.
In large-scale commercial projects, there are millions of dollars at stake, so you want to have the most detailed information possible about the property. This is quite tough with large-scale projects when countless risks are lurking around the corner, waiting to stall your project. It’s easy to overlook any small error that will have substantial legal and financial repercussions in the future.
Due diligence will identify any risks or defects, and come up with strategies to alleviate them, which is why you need to begin the process as early as possible. Due diligence doesn’t just happen at the start of a project, it is a continuous process that occurs throughout a project. Inevitably, there will be changes in schedules and budgets, and these will also need due diligence to assess and mitigate any associated risks.
What due diligence services do you offer?
In our due diligence for commercial real estate, we offer comprehensive documentation and cost reviews for your project. We assist lenders with identifying and mitigating construction risks during the underwriting process for construction loans.
Our consultants review all aspects of both the property and your project itself. For example, we consider and comment on the feasibility of project drawings and specifications. We review geotechnical reports, permits, entitlements and zoning reports, and construction contracts. We will also assess your project milestones, schedules, and budgets.
Our due diligence also includes the cost for complete analysis and property condition assessments. For partially-complete construction projects, we will review current construction contracts, change orders, construction logs, permits, and lien waivers. We will also:
How to select a consultancy firm for due diligence
The first thing to look for is the experience and expertise of due diligence, which you can gauge by contacting the firm and looking at client testimonials. They should have experience dealing with large-scale, high-risk construction projects.
You should also consider how much experience they have handling projects in your industry. A good consultancy firm should be able to handle projects within any industry, ranging from luxury residential to retail projects.
Are you looking for a consultancy firm to conduct due diligence for commercial real estate projects? Contact our nearest New Banks office to see how we can assist your project.Due Diligence For Commercial Real Estate