# Capital-project planning

Canonical: https://chicagocommercialfunding.com/tools/capital-project-planning/

Evaluate scope, financing, disruption and accountability before work begins.

An original educational working agenda, not a legal form or substitute for transaction-specific advice.

- [ ] **Define the problem and objective.** Separate mandatory repair, risk reduction, tenant commitment and revenue improvement.

- [ ] **Commission appropriate investigation.** Use qualified specialists to identify the root cause, scope and alternatives.

- [ ] **Build comparable scopes.** Give bidders equivalent specifications, exclusions, access assumptions and completion standards.

- [ ] **Verify approvals.** Identify permits, lender consent, tenant obligations and ownership approval before commitment.

- [ ] **Model the complete cost.** Include design, permits, supervision, contingencies, financing, tenant disruption and operating impacts.

- [ ] **Evaluate vendors.** Check experience, insurance, references, staffing, subcontractors and capacity.

- [ ] **Negotiate administration.** Clarify payment milestones, change orders, retainage, inspections, warranties and closeout documents.

- [ ] **Plan tenant impacts.** Schedule access, shutdowns, temporary services, notices and safety requirements.

- [ ] **Track progress and changes.** Maintain an approved budget, contingency log, schedule and responsibility matrix.

- [ ] **Close out and update records.** Collect approvals, warranties, as-builts, training, manuals and maintenance changes.

- [ ] **Verify funding before commitments.** Match invoices, lender releases and owner cash to dates. Identify required equity, cost-to-complete tests and a funded response to delay rather than assuming the contingency is available for every purpose.

- [ ] **Assign stop and change decisions.** Record who can pause work, authorize extra scope or commit contingency. Check contractual consequences and tenant obligations before treating a stop option as cost-free.

## Research sources

- [OCC — CRE underwriting and risk framework](https://www.occ.treas.gov/publications-and-resources/publications/comptrollers-handbook/files/commercial-real-estate-lending/pub-ch-commercial-real-estate.pdf)
- [Chicago — construction-code starting point](https://chicago.gov/city/en/depts/bldgs/provdrs/bldg_code/svcs/chicago_buildingcodeonline.html)
- [SEC — negotiated work-letter example, 2024](https://www.sec.gov/Archives/edgar/data/1600033/000160003324000043/q12025exhibit102.htm)