Construction Consulting of Maine helps protect lenders and their clients from the inherent risks and exposure in construction lending. Construction loan risks include funding of troubled projects, funding work that is not completed and the failure of a contractor to pay subcontracors/material suppliers.
Whether the borrower is a devloper, an entity employing a contractor or self-contracting, risk can be mitigated before construction starts with construction loan management skills and experience. Prior to loan approval, CC of Maine reviews the borrower's pro forma, construction budgets, contingencies, construction documents, contracts and permitting. This comprehensive evaluation helps to ensure that a project is viable and adequately funded.
During construction, CC of Maine is on-site at regular intervals to verify that work is progressing in a timely manner, the work conforms to the contract documents, the quality of work meets industry standards and guidelines and that invoicing is commensurate with the work in place. This third-party inspection minimizes the risk associated with construction not progressing according to schedule and overfunding for work that is not complete.
CC of Maine reviews loan draw requests that may include construction costs and/or soft costs associated with the project. Each funding request examines changes in the contract amount, invoices from subcontractors/suppliers and verification that all entities having lien rights have been paid according to terms of the contract. At the conclusion of this review, a report is promptly issued summarizing the review so that funding of draw requests can be released with confidence.
CC of Maine has the knowledge and flexibility to work with lending institutions’ individual requirements and protocols to ensure a smooth, timely and equitable release of funds.