The Cost-to-Complete report is an expanded Pre-construction Cost Review and Analysis for construction projects which may have (1) been recently assumed by a new lender; or (2) a new General Contractor has replaced the original GC. The constructions costs, therefore, need to be re-evaluated in light of present market conditions.
Preparation of the report includes an on-site inspection by an experienced, knowledgeable individual (in most cases an Architect or Professional Engineer) who assesses the current percentage of completion, as well as a full review of the project plans, current draw request, and original budget, giving LQA sufficient information to opine on the cost required for project completion. The report is an invaluable resource to the lender in evaluating the remaining hard costs from a construction perspective.
This report can be performed prior to submitting a foreclosure bid, also known as a Foreclosure/Oreo Analysis.