PROJECT

MONITORING
ANGCAO BUENAVENTURA ESPAÑOLA MASICAP PAKINGAN SITOY
INTRODUCTION

Project Monitoring is distinct

from both project management
and construction monitoring, and
can be defined as:
INTRODUCTION

“Protecting the Client’s interests by

identifying and advising on the risks
associated with acquiring an interest in a
development that is not under the
Client’s direct control.”
PROJECT MONITORING IS CARRIED OUT ON
BEHALF OF A RANGE OF ALTERNATIVE CLIENT
TYPES INCLUDING, FOR EXAMPLE:
 a funding institution, which will acquire the scheme as an investment
upon completion;
 a tenant or purchaser which enters into a commitment to lease or
purchase a property upon completion;
 a Bank or other development finance company where a loan matures at
the end of the development period;
 grant funders; or
 private finance initiative funders and end users.
TYPES OF PROJECT MONITORING
Land and Property Acquisition Matters
Statutory Compliance
Competency of the Developer, its team and any proposed project management
systems
Financial appraisals
Development, finance, consultancy and construction agreements
Construction costs and programmes
Design and construction quality
TYPES OF PROJECT MONITORING
Land and Property Acquisition Matters
In this case the Project Monitor is appointed to advise on the
Client’s long-term interests in the property. Typically, when assisting
the Client’s solicitor, the Project Monitor is appointed to advise on
the technical aspects of the Client’s report on title. Such advice may
include a review of matters that affect the land title (boundaries,
easements, covenants, etc.) as well as other neighbourly matters
(party walls, rights to light, etc.).
TYPES OF PROJECT MONITORING
Statutory Compliance
A building developed without planning permission or compliance
with building regulations or other statutory controls will be worthless,
require expensive remedial alterations or at best retrospective consent.
Similarly, having consent but not complying with any related conditions may
render the consent invalid and prohibit beneficial occupation. In either
scenario, the detrimental impact on the value of the development would be
significant.
TYPES OF PROJECT MONITORING
Competency of the Developer, its team and any proposed
project management systems
In this case the service required from the Project Monitor will vary in inverse
proportion to the Client’s sector knowledge. Professional funders and financiers, for
example, will have a good understanding how the industry operates and tend to need
less advice from the Project Monitor. However many purchasers, tenants and public
sector Clients have little sector knowledge and will rely on the Project Monitor to
advise on the competency of the development team and the Developer’s project
management systems.
TYPES OF PROJECT MONITORING
Financial appraisals
Where appropriate the Project Monitor is advised to ask
to review the Developer’s appraisal. This is often a sensitive area
where the Developer may feel that it is being asked to divulge
commercially sensitive information. It is important that the Client
is made aware of this sensitivity by the Project Monitor
TYPES OF PROJECT MONITORING
Development, finance, consultancy and construction agreements
The Project Monitor may be instructed to advise on technical
aspects of development, sale or lease as well as consultancy and
construction agreements. This will include commenting on how these
agreements protect the Client’s interests
TYPES OF PROJECT MONITORING
Construction costs and programmes
In all appointments the Project Monitor may ask to review the
Developer’s cost plan and development programme. Once again this is
often a sensitive area where the Developer may feel that it is being
asked to divulge commercially sensitive information. It is important
that the Client is made aware of this sensitivity by the Project
Monitor.
TYPES OF PROJECT MONITORING

Design and construction quality

Clients will often instruct the Project Monitor to review the design,
specification and plans and monitor the works as they proceed. This is
particularly common where a Client enters into an agreement to fund,
purchase or lease a development that has yet to be built.