When performing due diligence on a construction loan, lenders should always require a construction contract review as part of an overall plan and cost review (PCR). The contract, after all, is technically between the owner and the general contractor but, as the owner is also the lender’s borrower, it has tangible impacts on the associated…
Construction projects carry risks for everyone involved, from the owner to the general contractor to the lender. Good construction funds control is one of the ways that lenders mitigate financial risk during the construction process, and ensure a successful and on-budget project. What Is Construction Funds Control? Construction funds control is the process by which…
When it comes to construction loan consulting, many banks still operate on a one-off basis, with each individual branch or loan officer hiring whichever local contractor or consulting firm they prefer. This can work fine for small banks, but if your organization’s book of business spans beyond the geographic footprint of a few branches, you’re…
If you’re planning new construction for your business this year, you may want to hire an owner’s representative to protect your interests. Your owner’s rep will be your right hand in keeping your project(s) on budget, on schedule, and at the quality you expect. Be aware, however, that not all owner’s reps are the same….
If you’re planning construction projects this year, you understand the importance of assembling the right team to design and build your new facilities. What you may not have considered is the importance of hiring an owner’s representative to oversee those projects. If you haven’t considered hiring an owner’s rep, or are on the fence about…
When you invest in a commercial property, you should always order a property condition assessment (PCA) as part of your due diligence process. The PCA (also called a “facility condition assessment” or FCA) is the commercial equivalent of the home inspection. Because of the relative complexity and size of the commercial investment, however, it is…
In commercial construction lending, the plan and cost review (PCR) is a standard part of the underwriting process. So standard, that most lenders don’t think much about who provides the PCR or what’s in it, so long as it gets done. That’s a mistake. A thorough, accurate, and expert PCR can prevent costly mistakes, while…
We don’t have to tell you that construction lending is high risk and that the more complex the project, the more risks there are. As part of construction lending due diligence, most institutions require a Plan and Cost Review (PCR). What many lenders don’t know, however, is that not every PCR provider has the expertise…
As we head into the new year, we like to look back to see which of our posts you enjoyed in the previous year, so we can bring you more of what you want. We thought it would be fun for you to see which of our posts were the most popular in 2017. Based…
An exposure assessment is a necessary and important tool for ensuring the health and safety of your workers. But many employers don’t understand exactly what it is, why they need it, or how to do it right. Here’s what you need to know. Definition: An exposure assessment evaluates the nature and magnitude of exposures to…
