Construction

Construction details are applicable for the Commercial Real Estate Asset Class. The Construction details section is used to set up the budget and disbursement details for a real estate loan. A budget plan is used for a construction-based application. Financial institutions typically disburse construction loan funds by way of a standard disbursement plan or a progressive disbursement plan.

Add budget

Steps

1. Log in to your Salesforce account.
   

2. Go to  (App Launcher) > Applications.
   

3. On the Applications tab, from the list of applications, select the required application.
   

   The Loan Details are displayed.
   

4. Go to More > Construction.

5. In the Budget section, select Add Budget.

6. Provide the following details:

   Field Name	Action and Description
   Type	Select the type of construction project being undertaken from the following available list: Office Building Warehouse Residential Construction Only Construction-to-Permanent
   Description	Enter the description of the construction project.
   Start Date	Enter the date on which the construction project is scheduled to begin.
   End Date	Enter the date on which the construction project is scheduled to be completed.
   Disbursement Type	Select the type of disbursement plan from the following available list that is being applied to the project: Standard: The Standard disbursement plans have been configured by the organization and will automatically create project milestones and disbursement schedules based on the type of construction project. Progress: The progress-based disbursement plans assume that specific project milestones, or progress checkpoints, will be used to define the disbursement schedule.

7. Select Save Budget.
   

   
   

   On saving the Budget details, the Budget Milestone section is available for users to define budget milestones:
   

   
   

   In the Budget Milestone, users can add, save, and delete a budget Milestone.
   

8. To add a budget milestone:
   

   1. Select Add Milestone.

   2. Provide the details as explained in the following table:
      

      Note:

      You can refer to the following image for reference.

      Field Name	Action and Description
      Description	Enter the description of the construction project milestone. For example, Phase 1.
      Start Date	Enter the date on which the milestone is expected to begin.
      End Date	Enter the date on which the milestone is expected to end.
      Inspection Lead Time	Enter the number of days prior to the start date of the milestone that an inspection alert should be generated.
      Total Amount	This displays the sum of the amount of all the Budget Line Items for the Budget Milestone.
      Action	Select this to perform further action on the respective budget milestone, and then select the action from the following available list of actions: View Budget Line Items: Select this to view the individual construction activities that should occur by the completion of a Budget Milestone are displayed. On selecting this, individual construction activities that should occur by the completion of a Budget Milestone are displayed. Flag For Deletion: Select this to delete the Budget Milestone.

      
      

   3. Select Save.

9. To generate a disbursement schedule:
   

   1. Select the required milestone.
      

      This displays the Generate Disbursement Schedule button.
      

      
      

   2. Select Generate Disbursement Schedule.
      

      This displays a disbursement schedule in the Disbursement Schedule section.
      

      
      

   3. To save this disbursement schedule, select Save Disbursement Schedule.