As with any construction project, steady progress and quality of build are important factors. But the overview of costs and budgets is also a major factor to be considered, and if you’re using a funding body for your project, this can be a key element of your scheme.
So, how do you make sure the budget is applied in the correct way? How does the funding body know you’re carrying out this project correctly and successfully with their money?
They appoint a ‘fund monitor’!
So, what is a fund monitor, how does it apply to your project, and what do they do?
What is a Fund Monitor?
A fund monitor is a construction professional, usually from an RICS background, who will monitor the funds released from the funding body to a construction project, to make sure that the money is being used correctly. They essentially act as the ‘eyes and ears’ for the funding body and monitor all aspects of residential and commercial projects.
To do so effectively, they will complete a Feasibility Report – this is a detailed initial review of the project documentation, which is provided by the developer, to ensure the project is set up correctly with appropriate budgets, and will be delivered in line with planning, building control, the project specification and quality requirements. Following this report, monthly site visits will be carried out and reports prepared to monitor and report on the progress as the work proceeds.
How Does This Apply To My Project?
If you are receiving funding, the funding body will probably appoint a fund monitor. You will have access to the fund monitor, as they will be in contact with you on the monthly site visits and for any documentation requests, but they are essentially appointed by the funder, and act for the funder, not you.
An important aspect, however, is that you need to ensure that all the information needed by the fund monitor is ready for, and issued to, them at the point they undertake the Feasibility Report, and that everything needed for the monthly valuations is also available.
That’s where having the right members of your ‘Power Team’ is critical, and for this matter you need your Project Manager and Quantity Surveyor.
The funding bodies request and appoint fund monitors to police the project, which gives them the comfort that the risks of lending the funds are minimised and that their lending is in safe hands!
For your part, developing an excellent working relationship with the fund monitor is essential to the smooth drawdown of your project funding!