Project monitor drawdown letter
The project monitor will frequently be required to provide a recommendation to the bank or fund on the drawdown of development expenditure. Typically the developer will submit a drawdown request including a cumulative summary of costs incurred to date together with supporting documentation i.e. architect's certificates, fee invoices, etc.
The project monitor should review and check the drawdown request by comparing it with the cashflow forecast and any budgets or cost plans provided in the development agreement or in the initial audit report. It is important that the project monitor advises the client if any budgets or cost plans have been, or are like to be, exceeded.
At the end of this exercise the project monitor should make a payment recommendation to the bank or fund based on the information received. This document is a sample letter making such a recommendation.