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Nova Group Pacific provides independent Construction Loan Monitoring (CLM) services that help lenders, developers and trustees maintain confidence in the execution of funded building and development projects. Our experienced team verifies progress, cost conformity and regulatory compliance in accordance with contract obligations and financing frameworks.
Why Construction Loan Monitoring Matters
Construction and redevelopment projects involve significant capital, schedule risk and complexity. Without rigorous monitoring:
- draw-down funds may be paid for incomplete or defective work
- schedule delays or scope changes can jeopardise returns and lender security
- regulatory or code non-compliance can create latent risk and invalidate insurance or financing
- lack of oversight may lead to cost escalation, variation disputes or project failure
Who Benefits from CLM Services
- Lenders or finance providers requiring assurance that borrower works comply with contract, budget and programme
- Developers seeking independent verification of project progress and cost-control to support stakeholder reporting
- Investors or trustees needing confidence their capital is being applied to meet agreed milestones and specifications
- Asset owners or fund managers monitoring refurbishment or redevelopment projects on behalf of partners
Our Approach
Our CLM approach is built on transparency, precision and regulatory alignment:
- Alignment with loan terms and contract milestones: we reference approved budget, programme, specification and draw-down schedule
- Inspection & verification: regular site audits, milestone reviews, cost verification, variation analysis, certificate validation
- Compliance &-risk review: assess building works for compliance with BCA, NCC, Australian Standards, as well as site safety, insurance and statutory certification
- Reporting & advisory: concise monitoring reports with progress summary, risk dashboard, draw-down verification and remedial recommendations
Process Overview
1. Engagement & Scope Definition
Define project, budget, timeline, key milestones, documentation and reporting expectations.
2. Baseline Review
Review contract documents, approved drawings, budgets, specifications, and draw-down schedule.
3. Monitoring & Inspection
Conduct periodic site visits, progress photography, milestone assessment, budget tracking and variation log.
4. Reporting & Recommendation
Prepare structured monitoring reports for funders or stakeholders, flagging risks, confirming valid draw-downs, and recommending control actions.
5. Close-out & Handover Support
Upon project completion we verify final scope, cost reconciliation, defects list and certify milestone closure for funders or trustees.
