BC-Monitoring Scope of service
This publication with its first edition standards is based upon established and accepted construction and legal guidelines. Specifically, by using an audit approach in order regulate the project audits through the use of standards and regulations implemented by BCMA. These standards bridge the gap between what is required from a construction perspective, and what is required from a financial perspective.
Therefore, in addition to the previous and known quantitative approach, the BCMA is for the first time implementing a qualitative audit approach that will allow for a scalable evaluation to the audit results.
Phase 1
Design and Preparation Phase
I. Organisation
A) Preparation of an initial report, which includes a basic review after reviewing the documents provided by the financing bank and/or the investor (inventory ), serves as the basis for the first disbursement of loan funds to the investor and ongoing monitoring: core statements on the feasibility of the categories I. Organization, II.
qualities , III. costs (observance of the proportionality principle), IV. deadlines, V. award
/ contracts, VI. Risk management , VII. Insurance, VIII. Marketing and IX. Sustainability (design). This is always carried out, where appropriate, using key performance indicators with standardized derivation, risk classification and future risk assessment based on complete, precise and current data, as well as the use of analytics and visualizations
B) Review of the overall organization of the project in its management functions
C) Participation in and/or review of project meetings incl. subsequent Plausibility check of the protocols of the seller or other third parties
D) Checking the digital sorting of general property documents
E) Extraordinary notification of organizational matters that have a potentially negative impact on the project and/or its investment value
F) Review of change management
G) Review of the functionality of the investor’s organizational and operational structure by checking the plausibility of the organizational structures and set-ups, processes and relevant workflows, which show that the investor can manage the project.
H) Ongoing plausibility checks of decision templates and approvals within the scope of change management, with regard to deviations from the order value (costs, deadlines,
etc.).
II. Quality
A) Review of the situation for obtaining official authorizations and permits
B) Review of sustainability and certification processes
C) Plausibility check of quality-relevant documents with project objectives and manufacturing processes, as well as obligations (e.g. loan agreement and/or functional service description)
D) Plausibility check of requirements planning and the planning status, as well as review of the Quality with regard to compliance with project objectives and production obligations (e.g. loan agreement and/or functional performance specification)
E) Plausibility check of the building and tenant fit-out specifications (e.g. compliance with DIN standards, the recognized rules of technology and/or relevant regulations)
III. Costs
A) Plausibility check of the final construction cost estimate incl. ancillary construction costs
B) Plausibility check of cost structure, cost development, cost estimates, cost deviations and investment and utilization costs incl. budget for risk provisioning (building reserve/ contingencies)
C) Check whether the cost structure and billing modalities are set up in such a way that the project management and/or project control is able to manage the project for the future and to take measures at an early stage in the event of deviations
D) Review of cost control
E) Review of project accounting for the outflow of funds
F) Plausibility check of additional and reduced cost claims from change requests and/or supplements
G) Plausibility check of cash flow models
IV. Dates
A) Review of the structure of the material and contractually relevant schedules and Milestones
B) Plausibility check of the award dates
C) Plausibility check of the construction schedule
D) Preparation of a monitoring schedule for comparison and plausibility schedules from the contracts of various stakeholders
E) Extraordinary notification of scheduling matters that have a negative impact on the
may affect the project development and/or its investment value
V. Awarding of contracts/contracts
A) Review of the award and contract structure (e.g. adoption of deadlines, clauses and/or bonus/malus rules) regarding feasibility and possible conflicts from interfaces with cost statements and schedules (limitation to relevant contracts, such as planner contracts, project contracts, construction contracts, neighbor contracts and/or broker contracts)
B) Review of property-related contracts regarding the technical aspects of subcontracting support of the legal representatives of the investor
C) Plausibility check of bills of quantities with the building specification
D) Review of the early tendering of service providers (e.g. facility management)
E) Review of contract management and the partnership approach between the project parties
F) Check whether all easements required for the development of the project have been obtained and are registered in the land register
G) Extraordinary notification of procurement and/or contractual matters that may have a negative impact on project development and/or its investment value
H) Checking whether the conditions for taking over the object of purchase are met (e.g. checking the documents to be handed over for completeness)
I) Review of the purchase agreement regarding technical issues
VI. Risk Management
A) Review of the investor’s risk management concept in the allocation of responsibility, structure, cost overruns, contract deviations (costs, deadlines and quality) in relation to the fulfilment of objectives and integration into the upstream risk management system.
B) Review of conflict management
C) Extraordinary notification of matters relating to risk management which are have a negative impact on the project development and/or its investment value
VII. Insurance
A) Review of the insurance concept and scope of the companies involved
B) Extraordinary notification of underwriting matters relating to the impact on the project development and/or its investment value
VIII. Marketing
A) Plausibility check of the compilation of buyer and tenant requirements
B) Verification of floor space details for rental and usable areas
C) Extraordinary notification of technical marketing matters relating to the have a negative impact on the project development and/or its investment value
D) Plausibility check of the marketing plan incl. interfaces
IX. Sustainability
A) Plausibility check of the compilation of buyer and tenant requirements
B) Verification of floor space details for rental and usable areas
C) Extraordinary notification of technical marketing matters relating to the have a negative impact on the project development and/or its investment value
D) Plausibility check of the marketing plan incl. interfaces
Phase 2
Execution Phase
I. Organisation
) Review of the updated project organization for legality, consistency and effectiveness
B) Checking the digital sorting of general property documents
C) Participation in and/or review of project meetings incl. subsequent plausibility check of the minutes of the seller or other third parties
D) Review of change management
E) Extraordinary notification of organizational matters that may have a negative impact on project development and/or its investment value
F) Review of the overall organization of the project in its management functions
G) Ongoing plausibility check of decision templates and approvals as part of change management regarding deviations from the order value (costs, dates and qualities) with decision documentation
II. Qualities
A) Plausibility check of the updated quality-relevant documents with project objectives and production obligations (e.g. loan agreement and/or functional performance specifications)
B) Carrying out regular property inspections (e.g. monthly) to compare the construction work with project objectives and production obligations (e.g. construction description, sampling and generally recognized rules of technology) and for the visual recording of recognizable significant and systematic defects (incl. photo documentation)
C) Participation in and/or review of central buyer- Jour-Fixe on the day of the regular building inspection (e.g. monthly)
D) Review of monthly performance status reports from project management
E) Check whether authorization procedures and expert approvals correspond to the
planning
F) Extraordinary notification of qualitative matters that have a negative impact on the
may affect the project development and/or its investment value
G) Regular checks (e.g. monthly) on the status of defect processing
H) Plausibility check of the measurement to be supplied by the surveyor in relation to the areas owed (under the purchase contract)
I) Random checks of the implementation of construction management activities (e.g. compliance with the health and safety plan and/or site condition) during construction
J) Review of documentation of relevant concerns and/or obstruction reports
K) Review of sustainability and certification processes
L) Verification of the requirements for legal acceptance (visual assessment of significant
and systematic defects)
M) Check whether relevant verifications (e.g. stability, fire protection and thermal insulation according to EnEV) and expertise (e.g. building physics, soil and traffic) are available
N) Ongoing plausibility checks of decision templates and approvals as part of change management with regard to deviations from the order (costs, terms and qualities) with decision documentation
III. Costs
A) Plausibility check of cash flow models
B) Plausibility check of invoices
C) Plausibility check of the methods for determining the project status
D) Plausibility check of supplementary declarations
E) Review of the purchase contract amount due to changed services (e.g. monthly)
F) Extraordinary notification of cost-related matters that may have a negative impact on the project development and/or its investment value
G) Review of any guarantees (e.g. building trade guarantees) according to § 959f BGB and/or payment guarantees) and their term
H) Plausibility check of the updated cost system
I) Review of the continued project accounting for the outflow of funds
IV. Dates
A) Review of the structure of the material and contractually relevant schedules and Milestones
B) Creation and/or continuation of a monitoring schedule for the comparison and plausibility checks of schedules from the contracts of various stakeholders
C) Extraordinary notification of scheduling matters that have a negative impact on the the project development and/or its investment value
D) Participation in and/or review of project meetings incl. subsequent Plausibility check of the protocols of the seller or other third parties
V. Awarding of contracts/contracts
A) Review of contract management and the partnership approach between the project parties
B) Plausibility check of the award dates
C) Review of property-related contracts regarding technical issues to support the legal
representatives of the investor
D) Extraordinary notification of procurement and/or contractual matters that may have a negative impact on project development and/or its investment value
E) Participation in and/or review of the acceptance of services as well as notification of apparently recognizable defects regarding the construction services owed under the purchase contract, the building permit and the implementation planning
VI. Risk management
A) Review of the risk management concept of the investor in the allocation of responsibility, structure, cost overruns, contract deviations (costs, deadlines and qualities) in relation to target compliance and integration into the existing reporting system
B) Review of conflict management
C) Extraordinary notification of risk management matters that may have a negative impact on the project development and/or its investment value
D) Plausibility check of supplementary declarations
VII. Insurance
A) Plausibility check of the insurance structure regarding the progress of the project
B) Plausibility check of the determined restoration value in accordance with § 15 PfandG
C) Extraordinary notification of underwriting matters that may have a negative impact on the project development and/or its investment value
D) Review of the fulfilment of the objectives agreed in the user contracts
VIII. Marketing
A) Extraordinary notification of commercialization issues that may have a negative impact on the project development and/or its investment value
B) Plausibility check of the percentage occupancy rate based on the information provided by the investor
C) Review of the fulfilment of the objectives agreed in the user contracts
IX. Sustainability
A) Checking the execution regarding the sustainability goals defined in the planning
B) Review of the fulfilment status of the certification
C) Notification of the client in the event of a risk regarding certifiability or achievement of the desired level
D) Follow-up of the measures required to achieve a certain level of certification
E) Checking the execution for compliance with the requirements of the EU taxonomy
Phase 3
Project Completion and Transfer Phase
I. Organisation
A) Preparation of a B report after completion of all services including handover of the relevant monitoring principles to the client in digital form:
• Summary of all findings from the project reviews in the relevant categories
I. Organization, II. Quality, III. Costs (observance of the proportionality principle), IV. Deadlines, V. Awarding /contracts, VI. Risk management, VII. Insurance, VIII. Marketing and IX. Sustainability (design). This is always carried out using key
performance indicators with standardized derivation where appropriate
• Final risk classification of ongoing risks based on complete, accurate and up to date data
• Use of analytics and visualizations
B) Checking the digital sorting of general property documents
C) Review of the overall organization of the project in its management functions
D) Participation in and/or review of project meetings incl. subsequent Plausibility check of
the protocols of the seller or other third parties
E) Plausibility check of existing overall assessment of the construction work in the period up to acceptance with project objectives and production obligations (e.g. building specification, samples and generally recognized rules of technology)
F) Carrying out regular property inspections to compare the construction work with the project objectives and production obligations (e.g. building specifications, sampling) and generally recognized rules of technology)
II. Qualities
A) Plausibility check of calculations based on gif standards (Gesellschaft für Immobilien- wirtschaftliche Forschung e.V.))
B) Plausibility check of the processing/release notification of defects (follow-up inspection after release notification ), which were recognized during construction and acceptance
C) Review of the documentation process until the defect has been rectified
D) Extraordinary notification of qualitative matters that have a negative impact on the may affect the project development and/or its investment value
E) Review of monthly performance status reports of project management
F) Review of sustainability and certification processes
G) Plausibility check of existing overall assessment of the construction work in the period up to acceptance with project objectives and production obligations (e.g. building specification, Sampling and recognized rules of technology)
H) Plausibility check of the measurement to be supplied by the surveyor in relation to the areas owed (under the purchase contract)
I) Review of the documentation of relevant concerns and/or Disability reports
J) Checking whether test reports of all legally and officially prescribed certificates and expert opinions as well as the inspection documents required for acceptance are available. documents (e.g. construction documentation) are available and plausible
K) Carrying out regular property inspections to compare the construction work with project objectives and production obligations (e.g. building specifications, sampling and generally recognised rules of technology)
III. Costs
A) Verification of compliance with all cost structures
B) Plausibility check of invoices
C) Plausibility check of the methods for determining the project status
D) Checking of any guarantees (e.g. Bauhandwerks-Sicherungsbürgschaft gem. § 959f BGB und/oder Zahlungsbürgschaft) and their terms
E) Plausibility check of the cost determination(s) of the general planner / the property and Specialist planner
F) Review of the purchase contract amount due to changed services (e.g. monthly)
G) Extraordinary notification of matters relating to costs, which are have a negative impact on the project development and/or its investment value
IV. Dates
A) Preparation and/or continuation of a monitoring schedule for the comparison of and
plausibility checks of schedules from the contracts of the stakeholders
B) Extraordinary notification of scheduling matters that have a negative impact on the may affect the project development and/or its investment value
V. Awarding of contracts/contracts
A) Plausibility check of the fulfilment status of material contracts and obligations Services
B) Review of contract management and the partnership approach between the project
parties
C) Review of property-related contracts regarding technical issues for subcontracting
support of the legal representatives of the investor
D) Participation in and/or review of handover(s) and acceptance(s)
E) Participation in and/or review of subsequent acceptance(s)
F) Plausibility check of maintenance, supply, and disposal contracts
VI. Risk management
A) Extraordinary notification of matters relating to risk management which are have a negative impact on project development and/or its investment value
B) Review of conflict management
VII. Insurance
A) Participation in and/or inspection of handover(s) and acceptance(s)
B) Extraordinary notification of underwriting matters that can have a negative impact on the project development and/or its investment value
VIII. Marketing
A) Documentation of all previous steps of the chapter Marketing
IX. Sustainability
A) Determination of the status of compliance with legal requirements regarding Certification
B) Checking the final energy certificate for an image of the constructed building
C) Monitoring the schedule for submission to the certification body
D) Tracking the status of the conformity assessment and subsequent submissions
E) Determination of deviations or determination of conformity with the EU-Taxonomy