Fund monitoring and due diligence for construction funders
Fund monitoring is independent oversight of a funded construction project, so that the lender or investor knows progress, cost and risk before each drawdown.
Funders rely on information produced by the borrower and the contractor. Vanor Advisory gives lenders, debt funds and investors a second, impartial view of the same project: before capital is committed, and at every drawdown after it.
Because our directors have delivered projects from the contractor side as well as the client side, we know how programmes are presented, how claims are built and where reporting tends to flatter the position. We read the detail so that the credit or investment committee does not have to.
Lenders, funds and investors in UK development
Senior and mezzanine lenders, debt funds, equity investors, family offices and joint-venture partners funding commercial, residential, purpose-built student accommodation, hospitality and data centre development in the UK. Single projects and portfolios.
Technical due diligence
Before capital is committed we review the project as the funder's representative. You receive a written report that states what we found, what evidence we relied on, what we could not verify, and what we recommend as conditions of funding.
- Design maturity and coordination
- Budget, contingency and cost plan robustness
- Programme logic, float and the route to completion
- Procurement route and building contract terms
- Planning, statutory and Building Safety Act position
- Delivery team capability and track record
- Risks that could affect cost, time or exit
Monitoring at every drawdown
Once funded, we monitor on a monthly or drawdown cycle. Each report is written for the credit or investment committee: short, evidenced, and clear about what is known and what is not.
- Progress against the contract programme and the funded programme, verified on site
- Cost incurred, committed and forecast to complete, against the facility
- Review of the drawdown request against work in place
- Variations, claims and contingency drawdown
- Risks and issues, with early warning where the project is moving off plan
- A clear recommendation on the drawdown
Decision-ready reports
Each report states the position, the evidence behind it, what is unknown, and what we recommend. Where a project begins to drift, we say so early, while there is still time and money to correct it.
Key Deliverables
- Initial due diligence report (red flag and full scope)
- Monthly or drawdown-cycle monitoring reports and site audits
- Cost-to-complete and contingency analysis
- Contractor and supply chain financial health review
- Statutory compliance and Building Safety Act review
- Funder investment committee reporting