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Construction Business Review
Newbanks
Systematic Ways to Navigate Problems in Construction Industry
Randall Beggs, Managing PartnerNewbanks, a distinguished privately-owned construction consulting firm, acknowledges these complex circumstances and provides its clients with a comprehensive, methodical approach to navigate these obstacles and uncover pragmatic solutions. By leveraging its expertise and innovative strategies, Newbanks empowers organizations to overcome the hurdles of the modern construction landscape and drive project success.
“We are often regarded as the eyes and ears of construction lenders and investors, providing valuable insights into the technical aspects of a project,” says Randall Beggs, one of the managing partners of Newbanks.
The company collaborates with the superintendent and project manager at the job site to understand the root causes of issues and identify feasible solutions. Subsequently, it synthesizes and conveys this information to lenders or investors, enabling them to make well-informed decisions regarding the project. This process involves assessing the effects on cost, schedule, and other aspects that influence project timelines.
The company’s services encompass preliminary plan and cost evaluations for proposed construction and rehabilitation projects, site observation and payment application reviews for new construction, property condition assessments for existing properties, certified needs assessments for housing authorities, Fannie Mae and Freddie Mac, cost-to-complete analyses, and workout scenarios for distressed assets.
Newbanks’ initial review ensures that construction lenders and investors receive comprehensive, transparent, and constructible design documents and plans.The firm also compiles the voluminous data into a succinct and comprehensible report, offering insights into technical components such as environmental site assessments, foundation design, and potential budgetary concerns. Utilizing its extensive database of construction costs, which are categorized by region and construction type, and accounting for inflation factors and updated prices, the company determines if any line item is higher or lower than comparable projects in the area. Nevertheless, it acknowledges the effects of inflation and supply chain disruptions on increased costs and provides cautionary statements as necessary.
Newbanks has encountered similar cases and successfully secured additional funds to complete the project.
Furthermore, the firm meticulously reviews construction contracts, particularly the exhibits, to identify any atypical language that could significantly alter the contract’s terms. It pinpoints allowance numbers and potential budget issues, notifying clients of possible pitfalls and aiding them in making informed decisions.
However, the budget is sometimes insufficient to complete the project due to inflation or labor shortages. When a lender asks for a “ cost to complete” analysis, the company assesses the project’s progress and remaining work and compares it to similar projects to estimate the completion cost. This gives the lender an idea of how much more funding is needed.
We Are Often Regarded As The Eyes And Ears Of Construction Lenders’ And Investors’ Providing Valuable Insights Into The Technical Aspects Of A Project
The company’s Northeast branches also provide workout scenarios where it discusses project issues with the developer, contractor, and lenders and devises a plan to finish them. This could involve bringing in new contractors or subcontractors or finding a solution between the existing parties.
Newbanks also helps settle disputes between contractors and developers regarding milestones set in their construction contracts, ensuring the continuation of an ongoing project. These milestones determine when financial disbursements are made, and often there is a disagreement about whether or not they have been met. In such situations, the company provides quick analysis and acts as a referee to help them reach a resolution.
Since its inception in 1961, Newbanks has served the nation’s lending institutions, real estate investors, and owners. It specializes in due diligence and has reviewed over 40,000 construction projects ranging in size from small residential developments to commercial projects well over $250 million . Most importantly, the company has exclusively conducted these assignments as its primary function, not as a sideline source of work.
Newbanks’ longevity and experienced team give it a competitive edge over newer firms. Its enthusiastic associates come from diverse backgrounds in project management, architecture, engineering, and other related fields. This ensures it tackles multiple projects and provides expert advice on various subjects.
Over the years, Newbanks has expanded and built multiple offices across the country, allowing for coverage wherever projects are developed and enabling it to offer competitive fees for each region. Being an independent, third-party Consultant, Newbanks provides the integrity, expertise, and consistency required to deliver excellent service and successful projects.
