Call Us: (800) 419-4923
 Call Us: +44 (0)20 3865 7701
 Call Us: (787) 822-8377
 Call Us: (437) 855-4925
Partner Engineering and Science, Inc.
Partner Engineering and Science, Inc.
You are here: Home » Resources » Articles » Mitigating Construction Risks in Uncertain Times

February 26, 2021

Mitigating Construction Risks in Uncertain Times

By Bill Tryon

With an anticipated downturn in construction, now is the perfect time for construction investors to revisit policies and procedures. The increased yield from construction loans can contribute significantly to a bank’s bottom line, but with increased yield comes increased risk. After the Great Recession studies by FDIC and the Office of the Inspector General (OIG) showed that some lending institutions with high construction loan concentrations weathered the recession with no significant decline in overall financial condition. At the same time, though, almost all banks that failed during the recession had significant construction portfolios.

An increase in troubled loans is expected as a result of the pandemic. Lessons from the FDIC and OIG studies could provide useful tips to help mitigate risks. Aggressive growth, high construction loan concentrations, poor risk management practices, ineffective controls and risky decision making were identified as past contributors to the failure of most institutions.

To read more about this article, click here.

About the Authors

Bill Tryon

Bill Tryon

Chief Strategy Officer
With over 30 years in the industry, Bill Tryon has developed risk management policies and procedures for one of the world’s top real estate lenders and has participated with government agencies to refine policies and requirements. He has developed a reputation for risk-based problem solving and excellence. As Chief of Construction and Environmental Services for a major real estate lender, he pioneered standards for the evaluation of environmental liabilities, property conditions, seismic and mold assessment activities. Many of his innovations and refinements have become common practice in the industry. He continues to influence due diligence practices as a member of the Environmental Banker’s Association, Co-Chair of the ASTM committee developing standards governing Property Condition Assessment, participation in additional ASTM committees, and Executive Director of the Construction Lender’s Risk Management Roundtable. As Partner’s Chief Strategy Officer, Mr. Tryon monitors industry trends and works with clients and the industry to develop policies and practices in response to emerging issues.

Other Resources You Might Like


Let us be your Partner

Learn how we can support your next project or share insights via our newsletter.
Terms and Conditions  |  Privacy Policy   |  Website Terms of Use  |  © 2025 Partner ESI. All rights reserved.
crossmenuarrow-up linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram