DCMI Mid-Atlantic

Lending decisions for construction projects require due diligence, such as cost analyses because developers often lack the financial expertise to prepare comprehensive project budgets which can hinder project completion on-time and on-budget. If not controlled, lenders will incur losses in loan defaults caused by elevated project costs. This is especially true now during the current inflation cycle.

DCMI Mid-Atlantic Inc. brings a distinct approach to construction finance project management. As a real estate due diligence consulting firm their team of professionals capitalizes on their experience as general contractors, tradesman, and OSHA-certified inspectors to provide due diligence solutions for their clients including large institutions and community lenders.

DCMI specializes in understanding challenging construction projects and proficiently managing budgets and disbursements as a third party. This enables developers and builders to operate under accurate budgets for the project while protecting the banks’ investments.

“We bridge the gap between construction knowledge and financial expertise by aligning the due diligence reports we prepare with the current economic climate and by forecasting future trends,” says Valerie Riccardi, Principal of DCMI Mid-Atlantic.

An in-depth experience in construction and finance supports DCMI’s services, including cost engineering, physical asset assessments, construction progress monitoring, environmental assessments, and construction management. It frequently acts as the lender’s representative throughout the construction process, supervising the financing process with a goal of preventing costly lending and investment errors.

Community banks form the bulk of DCMI’s clientele. DCMI assists their clients by liaising with developers and their contractors in aligning their project cost models with rising material expenses and formulating budgets that adhere to the issued construction plan, before banks invest in the project.

A project’s conceptual plan will undergo numerous changes before a construction set is issued. The pre-construction period is intensive; developers seek financing for the project during this phase. Lenders are at a disadvantage because it is difficult to comprehend a project that is not fully permitted. To mitigate their risk, front-end reviews or cost analyses are engaged to confirm the developer has allocated adequate cost to complete the improvements. This approach helps financial institutions grant closed-end loans for initiating the construction based on a general understanding of estimated costs. Prior to advancing any construction dollars, DCMI recommends lenders require developers confirm the final approved plans align with the booked budget otherwise, an increase may be required.

While construction is in progress, DCMI performs progress monitoring construction inspection reports which summarize hard costs and soft costs associated with the construction process, including services from engineers and architects, testing agencies and specialty subcontractors.

Acting as a third-party intermediary, DCMI also offers fund control services for high-risk construction loans and U.S. Small Business Administration (SBA) clients. By utilizing a budget management approach of allocating subcontractor invoices to the general contractor requisition and other invoices to the construction budget, DCMI ensures the project plans are reconciled and balanced with the agreed upon project costs.

DCMI’s initiative-taking approach to thoroughly assessing property conditions, using experienced professionals in the initial stage, helps facilitate swift loan approval. It takes utmost care to ensure the project adheres to the loan agreement’s parameters, minimizing vulnerabilities and potential issues in construction budget reconciliation, and safeguarding lenders from investment risks.

Equipped with an extensive understanding of the construction landscape and financial due diligence, DCMI Mid-Atlantic is the partner banks and builders can rely on to protect their best interests in the real estate and construction lending spaces.