Published in GlobeSt.com on Jan. 18, 2024
With challenges plaguing the construction industry over the last few years—material shortages, supply chain disruptions, shortage of qualified labor—it’s hardly surprising that so many construction projects have gotten off track. If you are the lender on a distressed construction project, you may be faced with the dilemma of taking over the project or adding more capital to “right the ship.” This decision requires a thorough understanding of current project status and what is required to bring the project to successful completion. Below are some key considerations for lenders in this scenario.
Assessing the status of a construction project goes well beyond visual inspection. In addition to determining how much of the project plan has been executed, it is critically important to dig into project documents and interview relevant parties to determine the following:
If a lender lacks sufficient internal resources to thoroughly investigate these concerns, a qualified construction consultant can provide a Construction Status Review.
To learn more, read the full article.