CLM SERVICES PART I:

PRE-CONSTRUCTION ANALYSIS

CLM Inc. Preconstruction Analysis, presented normally prior to the closing of a loan, addresses those key parameters which determine the project’s constructability. The analysis provides a comprehensive review and critique of the available contract documents including thecontract plans, specificationsand the general contract. In addition, CLM provides, as part of its preconstruction analysis, an independent cost estimate and comparison. Typical analysis will include the following:

A. Project Description and Scope
This will be derived from the contract documents submitted and will provide a general description of the site, its size, frontage, access, utilities and its relationship to the proposed development including the number of buildings, if any, and their sizes and heights, the number of units and the gross and net leasable area’s available.

B. Plans Review and Critique
All plans will be reviewed for conformity with the applicable building
construction practices and codes and will be critiqued for possible omissions, errors or potential problems.

C. Specification Review and Critique
The project’s specification will be reviewed and critiqued for format, choices of building materials, their suitability and the general flexibility to the contractor in terms of material substitution and the process of approval with the owner-architect teams.

D. Subsurface Investigation Review
The findings and recommendations of the geotechnical report will be reviewed to justify the need for additional soil tests if abnormal site

The conditions appeared on the preliminary subsurface investigation report. The need for the rock contingency or other contingencies related to potential or unanticipated earth work operations will be examined here by CLM and relayed to the lender.

E. Cost Estimate and Comparison
CLM will perform an independent cost estimate as well as a review and critique of any available estimates prepared by other parties. This cost estimate will include all line items provided on the application for payment as well as other important costs related to construction items identified in the contact documents (e.g., plans and specifications) but not budgeted for in the submitted cost breakdown. In addition, CLM will recommend incorporation of hard cost contingencies based on the overall analysis of project.

F. Contract Agreement Review and Critique
CLM Will examine all business terms addressed by the general contract including the scope of the work, contract sum or guaranteed maximum price (GMP), date of commencement and substantial completion, retainage and the list of the latest contract documents and all other exhibits and attachments incorporated as part of the general agreement.

G. Construction Schedule Review and Critique
CLM will examine the preconstruction as well as the construction phase schedules (as it becomes available) and will evaluate the overall constructability of the project in terms of trade and activity coordination and the responsibilities of all parties involved. CLM will identify long-lead items and/or communication gaps and overlaps, if any, to ensure consideration prior to contract commitment.

H. Recommendations Based on CLM comprehensive review
and critique of the contract documents, all findings, comments and recommendations will be presented for our client’s review. Additional or missing data and documents will be requested from the appropriate parties to help ensure successful completion of the construction phase. When necessary, input from the architect or engineer of record will be requested with regards to CLM’s comments on important findings as a result of our study.

CLM SERVICES PART II:

IINSPECTION AND APPLICATION FOR PAYMENT REVIEW

Periodic inspections will be performed on a monthly basis. Each site visit will be followed by a written report addressing the over all status of the project and CLM’s disbursement recommendation.

CLM findings will be presented as follows:

A. General Project Status and Review

On a recap sheet, the general project status will be rated, in our judgment, as satisfactory or unsatisfactory. Items addressed on this recap sheet will include job progress, safety measures, site security, the condition of stored materials, general compliance with the contract documents and if applicable, the implementation of corrective measures.

B. Construction Status and Review

All items of construction are listed and reviewed presenting their extent of completion. Up to date parentage of completion of the individualconstruction items could also be presented here for closer monitoring of the construction progress.

C. Construction Evaluation and Analysis

CLM will provide information and comments as to the quality of
construction, workmanship and materials, comments on any technical construction problems and recommendations. Update the scheduled completion date and CLM’s estimated completion date. Manpower adequacy is also examined as part of the construction evaluation and analysis.

D. Construction Loan Status and review

Here CLM will provide comments on the application for payment (Draw Request) and in our judgment the disbursement recommendation in addition to retainage comments and our recommendation for approval or disapproval of the change orders both with regards to cost and necessity.CLM will review in detail the Application for Payment for direct construction cost (Hard Costs) including our own independent calculation on the work and its percentage of completion as compared to the percentages reflected in contractor’s/developer’s Draw Request. In addition, a thorough examination of subcontractor and vender invoices, stored material inventories and all relevant data will be implemented. The results of the analysis will be presented here to assist the lender in his decision to fund from the construction loan in accordance with a valid representation of the work set in place for the period covered by the Draw Request.

E. Inspection Photographs
Photographs of the project taken at the time of our inspection will be included with each inspection report showing construction progress and construction problem areas, if any.

CLM SERVICES PART III:

PROPERTY CONDITION ASSESSMENTS

A. Engineering Due-Diligence Physical Condition Surveys:

Prior to an acquisition or financing on behalf of lenders, institutions, mortgage holders or investors. Assessments and reports comply with industry standards such as those of Standard and Poor's and ASTM. The reports typically includes a comprehensive disclosure of existing conditions as well as a detail evaluation of the architectural and engineering (mechanical, electrical, plumbing, and fire/life safety) building systems, components and site improvements. General code compliance, capacities/adequacies, repair and maintenance issues, recommended replacements, capital expenditures, and opinions of probable costs for corrective action are also included in the report.

B. Capital Reserve Analysis

Including estimates for each of the major common area Property Components including building systems, expected Useful Life, Remaining Useful Life, Repair/Replacement Cost Estimates, Annual Reserves and 10-20 Year Capital Expense Projections.