Investing in a new-build construction project is a higher risk proposition than paying for a completed property. With the financial stakes being so high, it is vital that development work is properly executed.
This is where the role of the Monitoring Surveyor comes in. A Monitoring Surveyor oversees the progress of the project, and approves the various stages of the project to allow the drawdown of funds.
A Monitoring Surveyor is appointed by a party that has a financial interest in a construction project but are not directly involved in the building phase.
When acting as Monitoring Surveyors, we are most frequently appointed by lenders but may also represent investors, purchasers and developers.
Here are some other questions and answers to further explain the role of the Monitoring Surveyor in new-build commercial projects.
What is a Monitoring Surveyor’s role?
The role of the project monitoring surveyor begins before any construction has commenced. A report will be undertaken to review the proposed drawings, specification, cost schedules and programmes to ensure that the plans and contract documentation are appropriate. They will also advise on the proposed programme of payments to ensure these are reasonable.
During the construction phase, the Monitoring Surveyor will regularly conduct site visits to review the status of the building work. They will report on whether the work completed to date meets specification standards and is on programme. At various stages throughout the build, the Monitoring Surveyor will meet with the developers to discuss the ongoing works, and any problems that may arise during construction. Once satisfied that the work has met the required level and standard, they will approve the next interim part-payment to be made.
We will ensure that the contractor is not claiming for inflated overly-excessive interim payments throughout the build process, and see that the monthly drawdown payments reflect the status of the work that has been completed each month.
At the end of the build, the Monitoring Surveyor will undertake a full snagging inspection. This will identify and detail any issues that may need to be rectified before Practical Completion. Utilities, gas and electric will all be checked as part of this process to ensure they are live and ready for the buyer to take occupancy. Crucially, the Monitoring Surveyor will also ensure that all appropriate paperwork / certification is in place at that stage – e.g. Building Regulations, Health & Safety File, gas safety certificates, electrical certificates, as-built drawings etc. Only after the Monitoring Surveyor has signed off on the project will the final payment be released and the project handed over to the client.
When do you need to appoint a Monitoring Surveyor?
Generally speaking, the larger the proposed development, the larger the risk to the lender or investor. However, each project is different and will present different risks and challenges, meaning that all ideally, all projects should be overseen by an experienced professional.
Lea Hough’s Monitoring Surveyors have both technical and project management expertise, alongside extensive funding knowledge which enables us to provide a reliable and valuable service to our clients.
For more information on our Monitoring Surveyor services, please contact us.
