The Pre-Construction Conference is an informational tele-conference conducted by LQA that includes the lender and the developer's team (i.e. General Contractor, Owner, Architect, etc.). Its purpose is to explain the loan funding process in detail, to set forth the necessary documentation to facilitate the process, and to clarify and agree on the terms and process regarding pay application cutoffs and funding dates, retention terms, the change-order process, stored materials issues, submission of invoices and lien waivers, among other issues. In general, it explains to the contractor how he gets paid.
A comprehensive funding and documentation package is prepared by LQA and provided to conference participants. The conference can be conducted via teleconference or at LQA's, the Lender's, or the Borrower's office. Ideally, the conference will be scheduled subsequent to a Pre-construction Cost Review & Analysis being performed so that items discovered in the review can be discussed in any necessary detail with all parties present.