))
Building Smarter: Managing the Construction Draw Phase
Manage episode 431884841 series 3529496
Content provided by Lender Consulting Services. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Lender Consulting Services or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.
Welcome back to another insightful episode of the Smarter Lending Podcast! A second part of our series on SBA (Small Business Administration) Construction Lending, featuring experts Nick Jellum, Michele Walters, and Trevor Richardson covered a wide range of essential topics, from pre-construction due diligence to managing disbursements and ensuring the proper use of lien waivers.
Key Takeaways from the Episode
1. Thorough Pre-Construction Analysis Trevor emphasized the importance of a comprehensive pre-construction analysis. This step is critical for identifying potential issues in the drawings, budget, and contract before construction begins. By addressing these concerns early, lenders can mitigate risks and set the stage for a successful project.
2. Effective Management of Disbursements Michele and Trevor shared best practices for managing disbursements during the construction phase. Monthly disbursements using AIA Applications for Payment and physical onsite inspections ensure that the project's progress is accurately tracked, and funds are appropriately allocated.
3. The Critical Role of Lien Waivers Lien waivers are essential for protecting the project against outside liens and ensuring that funds are distributed to the right parties. Both conditional and unconditional lien waivers should be collected and properly filed to maintain legal protections and financial clarity.
4. Proactive Monitoring and Communication Keeping the project on schedule and within budget requires constant communication between all parties involved. Trevor highlighted the need for accurate Applications for Payment and a diligent review process to ensure that disbursement requests are justified and properly documented.
5. Addressing Common Issues From over-budget construction to seasonal delays, Michele stressed the importance of having tough conversations early with borrowers and contractors. By addressing potential shortfalls as soon as they arise, lenders can prevent project delays and financial complications.
4 episodes
Share
