Communication: The Key to Any Successful Lender-Consultant Relationship
By Don Ohle, Senior Director of Debt Engineering at Barings & AJ Nosek, Principal, National Client Manager at Partner Engineering and Science, Inc.
Originally published in the 2026 CLRM Journal.
Before diving in, a little context (and credibility). Between the two of us, we’ve spent decades in and around commercial real estate due diligence; long enough to remember when plans and reports were mailed in physical form, not uploaded, and when “quick turnaround” still meant more than 48 hours.
AJ’s more than 15-year career spans both sides of the table: he began in finance and later moved into consulting. Don spent over 20 years as an engineering consultant before joining Barings roughly five years ago.
We have spent more hours than we’d ever admit debating nuances that can make or break a deal. This article distills those lessons into practical steps to strengthen lender-consultant relationships from proposal to closeout.
You will also notice a recurring theme throughout this article: communication.
Construction Risk Management Proposals: Setting the Tone Early
By the time an engineering consultant is engaged, the lender has often been living with the deal for months, and sometimes more than a year. They’ve discussed the project extensively with the borrower, underwritten the loan, completed market research, and likely visited the site. Meanwhile, the consultant may receive a brief email with limited project details and a request to submit a proposal within a few days for work that will be critical to the loan’s success and may extend over months, if not several years. This early information gap is common but avoidable.
Opportunities for Better Alignment at the Proposal Stage
The proposal stage often moves quickly, but it sets expectations that can persist long after closing. Taking time to align early can save significant effort, cost, and frustration later.
Insight for Lenders:
- If a consultant team performed well on a prior deal, ask whether that same team is available, even if it costs more. Familiarity reduces friction, learning curves, and surprises, all of which can be far more expensive.
- Share high-level insight into the capital stack so consultants understand communication expectations, reliance requirements, and risk tolerance.
- Flag additional guideline reviews early (e.g., hotel PIPs or tenant improvement scopes).
- Clarify whether tenant improvement (TI) costs will be in the draw and require consultant review.
- Set expectations around the anticipated closing timeline and the status of key documents. Are contracts executed? Are plans signed and stamped, or still aspirational?
- For renovation or adaptive reuse projects, discuss known historic issues that may impact the Property Condition Assessment (PCA) scope. (Yes, sometimes tenant improvements do require a new roof.) Provide available renovation budgets/scopes of work before the start of the PCA so that it can be incorporated into the findings.
Insight for Consultants:
- Ask questions and request missing information. Repeat as needed until a clear understanding of the project has been relayed. There is often more detail available than what initially lands in your inbox.
- Identify who is likely to staff the project and include resumes with the proposal. Are they local? Have they worked on similar project types or in the same market? Let the lender know; this often goes a long way when choosing a consultant.
- Request available documentation at the outset, such as prior seismic studies, PCAs, environmental reports, surveys, geotechnical exploration data, drawings, and anything else that may be helpful. Receiving these materials before drafting begins can streamline the process and help avoid unnecessary delays.
Shared Responsibility:
- Identify potential challenges early and align on risk mitigation strategies. Every project is unique; cookie-cutter approaches rarely add value.
Document and Cost Review: Where Assumptions Can Get You in Trouble
The document and cost review stage is where clarity either accelerates the process or quietly brings it to a halt.
Insight for Lenders:
- Identify the primary point of contact for documentation and dispute resolution. Should the lender be copied on requests?
- While loan agreements are often not shared with consultants, providing a summary of relevant provisions that may conflict with the general contractor’s (GC) contract can prevent unnecessary friction.
- Clarify whether reports should be delivered with known document gaps (e.g., partial construction schedules, 50% design drawings, draft GC contract) or held until everything is final. If choosing to hold, discuss whether additional fees will be required and how much time will be needed.
Insight for Consultants:
- Avoid asking developers for information that isn’t critical. Data often comes in many formats; requesting a reformat “just because” rarely adds value.
- Align with the lender on what they actually need; don’t assume. If unclear, communicate.
Construction Kick-Off: Everyone’s Excited… Let’s Not Trip Now
The kick-off phase sets expectations that will last through the life of the project.
Insight for Lenders:
- Is there an equity requirement before debt funding? Are site assessments and draw reviews required during the equity phase?
- Clarify upfront who will be responsible for paying consultant invoices. When outstanding invoices end up in the wrong inbox, it can create unnecessary confusion and delays.
- Clarify funding windows and loan document requirements once complete draw packages are submitted.
- Define communication pathways. Should consultants communicate directly with the borrower/GC, or route everything through the lender?
Insight for Consultants:
- Are critical documents missing and are they truly required from the lender’s perspective? Has this been communicated to all parties?
- Communicate major concerns or discrepancies identified during review of the construction documents well ahead of the report.
Shared Responsibility:
- If funds control services are being utilized, identify who handles document requests and missing information to substantiate the draw.
- Has the trusted source confirmation been completed? More importantly, ensure clear communication on the destination of funds for each disbursement, whether via hard checks, direct deposits, or wire transfers.
- How are draw requests submitted and reviewed? Is the GC/development team sending to lender first or both consultant and lender at the same time?
- Have there been changes to schedule, budget, or contracts since closing?
During Construction: Time Is Not Your Friend
Once construction begins, delays compound quickly, and silence is rarely interpreted generously.
Insight for Lenders:
- Be clear on whether missing documentation can be addressed via holdbacks to avoid delaying full disbursements.
Insight for Consultants:
- Every day counts. If a delay is anticipated, communicate with the lender well ahead of time.
- Reports are tools, not substitutes for real-time communication. Don’t wait to discuss substantial concerns and issues.
- Communicate challenges encountered during site visits or in obtaining critical documentation. The timeline of deliverables set by all sides at the onset may not be achievable with certain delays.
- Track pending change orders, contingencies, schedule revisions, budget reallocations, and buyout logs.
Construction Closeout: The Finish Line Is Still a Process
Closeout often feels like the end, but it still requires coordination.
Insight for Lenders:
- Clarify closeout documentation requirements. If none are identified within the loan, recommend the consultant to use industry standards.
- Coordinate with consultants on their final invoices to ensure inclusion in the final draw (sometimes invoices precede services; this is normal).
- Define what formally triggers closeout (consultants typically do not see the loan agreement).
Shared Responsibility:
- Discuss whether site visits are required when construction is substantially complete but final billing continues.
- Confirm what documentation is required for final retainage disbursement.
- Communicate final reporting expectations in advance: full report, site visit, desktop review, or if one is no longer needed (which often applies if a draw includes only release of retention and soft/operating costs).
- Determine whether a warranty walk is required and who is responsible for it. Is it included in the architect’s agreement? Does the consultant need to provide it? Or is it handled by another party?
Final Thoughts
This is by no means an exhaustive list; rather, it reflects the real-world challenges we regularly encounter from both sides of the table. More often than not, the fastest solution is not another email chain or revised report—it’s a simple, old-fashioned phone call.
Or, as we like to say: communication.
Done early and often, it not only prevents problems but also builds trust, accuracy, efficiency, and better outcomes for everyone involved.
