Tetra Tech’s Construction Risk Management team provides lenders and owners with a comprehensive and focused program to minimize the risks associated with construction projects. We provide these services to a diverse base of public and private sector clients and customize our services to fit each client’s individual needs. 

We have more than 35 years of experience in engineering, design, and construction plan review; more than 20 years of experience in the banking industry with emphasis on construction lending, disbursement, and funds control management; and more than 20 years of experience with United States small business government lending projects. 

Access our construction risk management client portal here. The secure and encrypted interface is available 24/7 from any web browser. In this portal clients can create a new proposal, review existing projects, see backup documentation and view inspection reports. If you are not a registered user and would like access please contact cdi@tetratech.com.

Lender Benefits

Our Construction Risk Management team provides reports, documentation, and solutions to critical issues that allow our clients to focus on the important decision making process. 

Construction Risk Management employs controls and safeguards that have been established to benefit all participants in the transaction. We use industry standards to monitor and control documentation collection, check preparation, and inspection processes. Our team uses a specialized accounting system to track and provide Form 1099 for all checks in accordance with Internal Revenue Service (IRS) regulations. We also obtain W-9s from all contractors, subcontractors, and material suppliers; distribute Form 1099-MISC; and maintain all appropriate records required by the IRS for 1099-MISC filing.

Tetra Tech matches our clients’ specific needs with our services provided by experts in their field at a rate that delivers value. 


Tetra Tech’s Construction Risk Management personnel interface with contractors, schedule inspections, and work through concerns and issues for our clients. Our expertise includes:

Tetra Tech provides initial project reviews of construction documents including plans, specifications, contracts, and budgets to help prevent significant issues before the loan closes and any work begins. Our personnel compare the project budget with the completed drawings to avoid costly change orders and help the lender confirm that the project can be built for the proposed amount.

Our initial project review includes:

  • Review analysis of contractor’s budget for:
    • Adequacy of each line item and entire project budget 
    • Analysis of budget allowances, contractor fees, and general conditions
  • Comparison of budget to similar budgets, construction contract, and national projects 
  • Review and analysis of:
    • Architectural; civil; mechanical, electrical, and plumbing; and structural plans and specifications
    • Geotechnical reports and soil surveys
    • Owner/contractor and owner/architect agreements
    • Surveys/plats for easements, setbacks, and utility connections
    • General accessibility and ADA Compliance 
    • Analysis of construction progress schedule

    Tetra Tech’s Construction Risk Management inspectors visit project sites to assess construction progress and validate that the work in place matches the funds being requested. Our inspectors perform physical inspections and review the cost breakdown and plans to determine what construction activities have been completed. During site visits, our inspectors meet with the contractor to discuss project progress. The site inspector will verify material stored on site and take photographs of construction progress.

    Within 7 to 10 business days of the notification, Tetra Tech provides our clients a written report verifying the project’s approximate overall percentage of completion and provides a general description of the construction progress and approximate percentage of completion of each line item in the cost breakdown. Our team also provides photographs of various phases of construction.

      Tetra Tech’s Construction Risk Management team can monitor the construction and administration of funding for each project. This inspection is critical in maintaining a lien-free project. Prior to the start of a project, we prepare a Funds Control Agreement (FCA) to be signed by the lender, owner, contractor, and Tetra Tech. The agreement sets forth all terms and conditions by which Tetra Tech’s Construction Risk Management division will administer and distribute construction funds on behalf of the lender.

      Our standard services include:

      • Review and analysis of the Contractors Payment Application 
      • Analysis of the Contractors AIA form G702 continuation sheet for:
        • Percentage complete
        • Budget revisions, corrections, and change orders
        • Retainage errors, releases, and revisions
        • Stored material (on- and off-site) tracking
        • Proper funding credits to subcontractors and suppliers
        • Verification of proper signatures and approvals
        • Coordination of funding among lender, owner, and contractor
        • Adequate funds for completion of work 
      • Review and collection of lien waivers and releases 
      • Collection of W-9s and issuance of 1099s at year end 
      • Review and analysis of change orders for required signatures and approvals 
      • Construction site visit by trained inspectors or engineers 
      • A full written report of our findings

        Tetra Tech can provide our clients with a property condition report, which is an evaluation of the property’s maintenance and operational issues. The report contains photos of the exterior of building—parking lot, roof, siding—and interior photos of areas such as carpet, paint, lights, and the ceiling. Our staff also will inspect utilities. In conjunction with an existing appraisal, our team compiles this information into the property condition report.

          Tetra Tech’s Construction Risk Management team can provide a pre site inspection, which is typically performed when construction has started prior to a loan closing or when the client is purchasing an existing business. Our staff will provide a written report with photos to show the bank the level of completion for the project.

            Tetra Tech’s Construction Risk Management team will handle furniture, fixture, and equipment (FF&E) funding when a borrower has a separate loan for FF&E. Tetra Tech can either reimburse the borrower with proper back up documents or issue checks to FF&E vendors. Our team provides this service in conjunction with full funds control and inspection.

              Tetra Tech performs form survey reviews upon request to provide our clients with data regarding actual location of the building footprint on the project site, building footprint geometry, and foundation form elevation. We work with licensed surveyors and civil engineers to obtain digital survey data that is compared and contrasted with record drawings in written narrative, as well as graphic overlay. Our form survey review service is an extra layer of project oversight that can catch errors in building layout and elevation before concrete is poured.

                Tetra Tech’s completion assistance program (CAP) is offered to eligible projects following an initial project review and when full funds control and progress reviews are in place. The CAP provides assistance with the completion of a project in the event the contractor is terminated for cause or defaults during construction.

                In these instances, Tetra Tech’s commitment to assist its clients in the completion of a project begins following a legally documented termination and assignment of contracts to the owner. Through the CAP, we offer construction management services within 30 days, or as soon as the permitting process allows, and assist in bringing the project to a successful completion.

                Tetra Tech’s CAP is an alternative that keeps the project team together to minimize delays and ensure project completion.