Services ǀ Lender's Supervision ǀ Oktopaz

The element of trust is essential for financial consulting. Oktopaz earns its clients’ trust through professionalism, continuous work, and consistent application of a successful methodology.

A lot of time passes between the idea and the construction and return on investment of real estate developments. Providing significant financial resources is not simple. Investments are large, and the profit is gained only after the project completion and the sale or rental of constructed facilities.

If the investor owns construction land and a building permit, he has fulfilled the elementary conditions for project financing. Each lender determines the remaining conditions with its policy.

The investor hires a lender’s supervisor to prove that he meets all the terms for loan approval. Oktopaz is available to investors who want to provide project financing and reach an agreement with the bank.

On the other hand, the lender hires a supervisor to ensure that project funding is spent appropriately during project development. The growing list of banks to which we are authorised suppliers demonstrates our engineering and technical expertise.

During the lender’s supervision, Oktopaz regularly prepares technical and financial reports. They are a particular type of due diligence report.

A Zero letter is a report that Oktopaz prepares for the investor. Together with other necessary documentation, the investor submits it to the bank for consideration and approval of the loan. This report contains an overview and verification of:

  • Permits and approvals regarding construction
  • Legal, contractual and project documentation
  • Schedule of works
  • Estimated costs
  • Values of performed works
  • Funds previously invested in project development

Oktopaz protects the lender’s interests by monitoring and reporting on the project progress and the use of the loan. Thus we prepare a zero report, periodic reports and a final report.

We prepare the zero report after the approval of the project financing. On top of the items listed with the Zero letter, it contains additional information per the bank requirements and submitted documentation.

The periodic report includes a visit to the construction site and contains:

  • Review and verification of works performed during the month, accompanied by photo documentation
  • Control of construction progress against the agreed schedule of works
  • Review and attestation of the incurring costs, identifying possible budget overruns
  • Assess whether the drawdown funds remain within the approved budget and in which category

Our final report contains:

  • Assessment of compliance of the constructed facility with the building permit
  • Evaluation of the facility’s compliance with applicable regulations
  • Verification of obtaining a use permit

Oktopaz’s reports contain impartial, timely and reliable information on the essential parameters of the project’s progress against the agreed schedule of works and the approved budget.

Our reports include expert opinions and advice on the quality of project documentation and work performed, overall costs, identified shortcomings and project feasibility in terms of deadlines and the budget.

Oktopaz’s reports enable the investor to submit qualified and complete requests to the bank for approval of project financing.

Oktopaz’s lender’s supervision reports allow the lender to review project status and dominant risk parameters in a timely and reliable manner and approve drawdown requests.

Contact us now

to find out how our lender’s supervision contributes to the overall success of your project.