A Monitoring Surveyor is instructed by those with a financial interest in a construction project but are not directly involved in the building phase. These parties could be lenders, owners, investors or developers and it varies for each project.
Why do you need a Monitoring Surveyor?
The property market is extremely competitive with many people looking to get involved in their own projects to build a career or simply make a profit. This high demand means that it can be difficult to secure finance to carry out such projects. Lenders need to be sure about who they are lending to as construction projects are much higher risk than lending on a completed property as it is unknown at the beginning of the project what setbacks may lay ahead, affecting the profitability.
Monitoring Surveyors utilise their experience of building surveying, construction project management and cost management to deliver an excellent all-round service to their clients. Their actions reduce the clients’ short-term financial risk and aim to secure the long-term benefit of the project.
What is the role of a monitoring surveyor?
Whether this is your first venture, or you’ve been investing in property for a while, it is important to fully understand the services that a monitoring surveyor will provide you with and why it is crucial to employ one.
Many investors choose to work in partnership with a firm once they’ve found one that can provide high quality, reliable monitoring surveying, as this allows them to build on the trust and knowledge that they’ve established during their initial project together. You’ll have seen first-hand how they implement their role during a project and they’ll have witnessed how you like to run your business and administer the loan facility. This knowledge and understanding forms a solid foundation for a successful business partnership going forward.
The role of the monitoring surveyor should start well ahead of time to allow the lender to fully assess the borrower's development plan to ensure everything is feasible before funding is granted.
Your Monitoring Surveyor will:
- outline the goals of the project and assess the feasibility of the proposed budget
- review and evaluate the risks involved in the lending agreement
- advise on format of contractual warranties
- provide early warning to the lender on potential risks and consultation on how these risks can be managed or avoided
- advise on the procurement options and appointment of sub-consultants
- monitor the progress of the project in terms of the plan, timescale and budget
- approve and certify the drawdown of funds at each stage to ensure that expenditure of the development finance facility is being spent in line with the original proposals
- assess the risks if the borrower requests additional finances for their project, passing their recommendations to the lender
- visit the site regularly to oversee the project - if any problems are discovered with the way the project is being managed or delivered, they will provide advice and guidance to resolve these challenges
- advise on all statutory compliance matters
What skills should your Monitoring Surveyor have?
- Excellent communication skills to enable effective interaction with all involved parties
- Strong organisational and project management skills to ensure the smooth running of every part of the project
- An understanding of different funding models and lending process
- Sound understanding of financial matters and environments
- In-depth knowledge of procurement routes
- Good technical skills and construction cost management
When should you employ a Monitoring Surveyor?
It is imperative to employ a Monitoring Surveyor for each and every project that you are considering investing in. Each project will be different and will present different risks and challenges that should be fully assessed by a professional before you make your final decision.
You should get your surveyor on board well in advance of the finance being agreed so that they can ensure that the project is feasible prior to any commitments, which will significantly lower your risk factor. Essentially, the investment process is about ensuring profit and a successful outcome and having all the information at the beginning is what will enable this.
Our service to you…
The Sillence Hurn team has experience of monitoring developments from modest loans to large-scale development projects across both the residential and commercial sectors. We have experience in working with institutional high-street lenders, private lending houses and Peer 2 Peer and crowdfunding platforms.
Our core aim is to provide a modern, high quality service via communication and transparency. Although appointed by the lender, we also provide guidance to the developers to reduce the risk of future financial issues, which is beneficial to all involved.
We’re highly flexible and tailor our service to each clients' individual requirements to ensure their needs are met. Our team have both technical and project management expertise, teamed with extensive funding knowledge which enables us to provide an excellent, rounded service.
Get in touch to find out more about the Monitoring Surveyor services we provide or to discuss any projects you feel we could assist you with. We can arrange a meeting via video call if desired or will be happy to meet with you to discuss your requirement.
