Advisory Services

Independent monitoring surveying (IMS) should be considered a specialist service. The function involves experienced and qualified experts who understand the lender's (and similar third party funders) perspective and expectations. Knowledge of the project, its structure, costs, debt, equity, and (if appropriate) the sales plan is required. The ability to deliver accurate risk assessments is crucial so that lenders can make informed funding decisions.

Other terms that are commonly used to describe this role include ‘bank monitor’ or ‘project monitoring surveyor’.

At KastleCay we are of the opinion that the process should start before funding arrangements have been agreed and should then continue for the life of the facility that is put in place.

It is crucial for any successful agreement that the borrower’s development plan is verified to ensure that its assumptions are reasonable and tested using market knowledge and sensitivity ("what if?") analysis. Its also important to initiate a due diligence process to ensure that any external professionals and contractors that the borrower intends to employ are properly qualified, engaged and insured.

KastleCay have the experience and skills needed to undertake and apply these technical checks to the whole development process (from conception to completion) and then establish proactive protocols that ensure that these risks are and will be appropriately managed. In our opinion lenders are entitled to receive accurate project monitoring data so that they can make informed decisions.

However when properly applied the role of the IMS doesn't solely benefit those providing the finance (the lender); it will also benefit the borrower. A thoroughly researched and detailed report will establish the shared goals of delivering the project on time, on budget and as specified for all parties to the agreement.

As a Registered firm of Chartered Surveyors our role as an IMS is performed in compliance with the guidance published by the RICS. Lenders (and borrowers) need to be assured that the IMS is bound by guidance concerning conflicts of interest and ethics. We take the independence of the IMS seriously.

Not to be confused with the role of the "Employer's Representative", which is essentially a Contract Administration role, the Client's Representative's role is normally associated with representing stakeholders in a project who are not directly represented in the Construction Contract. For example a tenant, a funder, an end user. The objective of the Client's Representative is to ensure that the strategic objectives of the stakeholder are met and if any conflicts or issues occur to deal with them quickly and effectively. By doing so, we can help avoid costly mistakes and delays.

Appointing a Client's Representative also means that the stakeholder doesn't have to deal with the day-to-day project development issues that may arise and can, instead, remain focused on their own priorities.

Distressed development refers to projects that are facing significant financial or operational challenges, often resulting in the inability to meet debt obligations or achieve expected returns. In such situations, workout solutions are employed to address and resolve these challenges.

Workout solutions involve a range of strategies and actions aimed at restructuring or resolving the distressed development. This may include cost engineering, renegotiating construction contracts, securing additional funding, or pursuing alternative commercial strategies.

KastleCay have a deep understanding of challenges that are faced when tackling a distressed development and they have the experience needed to identify creative workout solutions, while also mitigating risks and maximising potential gains.

By adopting a proactive and strategic approach KastleCay can develop tailored strategies to help distressed projects recover and drive successful outcomes for all the stakeholders.

The traditional approach for allowing for potential risks and uncertainties associated with a construction project is to include a contingency sum in the cost plan, that is more often than not calculated by adding a predetermined percentage that is deemed to be appropriate for the current status of the design/construction.

Whilst KastleCay endorses the use of appropriate contingency allowances because they are simple and easy to implement, it cannot be ignored that they may not accurately capture the specific risks and their impacts on the project.

On complex projects, for example the New John Gray High School, KastleCay encourages the use of risk modelling to model the uncertainties in a project. Chief amongst these techniques is Monte Carlo simulation which we believe is a more robust and sophisticated method because it considers a range of possible outcomes for each uncertain variable and calculates the probability of each outcome. In our opinion this approach provides a more accurate assessment of the potential risks and allows for better decision-making.