When construction projects go bad, costs overruns and delays can wreak havoc on what otherwise appear to be lucrative developments projects. Final construction costs frequently far exceed budgets for filed projects, and indirect costs such as additional interest, insurance, taxes, and fees only make things worse. The impact of missed market opportunities can be even more significant. If your retail center doesn’t open before the holiday season, dorm opens after the start of college, or the project fails to meet a contracted delivery date, losses can add up.
The Construction Lender Risk Management Roundtable (CLRM) brings industry leaders together to share ideas and best practices for managing construction risks like these. The risk of failure is magnified by current construction market conditions; increasing materials costs, the availability of experienced contractors and skilled labor, and continued slow economic recovery all contribute to additional uncertainties.
To read the full blog post in GlobeSt, click here.
