Construction & Evaluation Mock Exam Question #2 | ARE 5.0 CE Exam 2024
🔍 Scenario: When working on a project, the Owner needs to present the schedule of values to a lender to secure a construction loan. As part of the terms, the Owner would like to show a $25,000 FF&E (Furnishings, Fixtures, and Equipment) allowance. However, to reduce contractor mark-up – which is typically done for coordination of deliveries, installation or set-up of furniture, or general project management – the Owner would like to handle all of the FF&E items themselves. To secure the full loan amount, the cost of furniture must be provided as part of the scope of work presented to the bank.
How would this process be implemented?