Most of the risk during construction projects comes not from performance issues, but instead from payment issues. As with most of us, general contractors are great at doing their jobs—in their case, construction—but are not necessarily adept at the paperwork or accounting side of the construction equation. Historically, 80-85% of construction defaults are due to errors in payments and/or funds disbursement. Specifically, the money is not getting distributed to the people who are performing most of the duties on a construction project—the subcontractors and suppliers. Many factors can contribute to this problem: poor management, accounting or paperwork errors, commingling of funds between projects (not a sound business practice), and, yes, although admittedly rare, even through the intentional diversion of funds.
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November 01, 2023
Evolving Markets & Technology Have Changed the Way We Budget for & Manage Investment Real Estate By Bob Geiger | Published in the NARIEIM Dialogues, Fall 2023 edition p. 46-49 […]
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Supporting CRE Business Objectives with a Data-Driven Management Platform Too many organizations struggle to capture the necessary data to successfully implement proactive management strategies, leverage economies of scale and improve […]
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GETTING ASSET DATA RIGHT For property managers, accurate property data in the right format can improve the decision-making process and significantly impact the bottom line. In this Fall NAREIM Dialogues […]
