2018 Year In Review

Posted by Will Mitchell on 12/21/18 1:39 PM

 

When 2018 started, we had five people in a small co-working office in North Austin. We had hired our second engineer only about a month earlier and had just recruited our third engineer to start in a few weeks.

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Topics: Insider

Preventing Construction Loan Fraud

Posted by Tara McAdams on 11/27/18 1:37 PM

Fraud is a concern in almost any industry, but the area of construction seems to be particularly susceptible to this malady. As a fairlyrecent study has shown, the amount of losses caused by fraud in construction industry is almost double the overall industry average. With a large number of moving pieces, both physical and financial, construction projects that aren’t closely monitored leave a lot of room for attempts at manipulation.

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Topics: Construction Loan Management Software, Construction loans, Construction Finance Management

The Basics of Walking with the Bank Inspector

Posted by Tara McAdams on 11/21/18 11:40 AM

Every loan-funded construction project will require a number of periodic onsite inspections. As the lending institution provides the funds for the construction project, it is in its utmost interest to ensure that the funds are used according to the project plan and that the work is progressing at the projected pace.

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Topics: Construction Loan Management Software, Construction loans, Construction Finance Management

The Basics of Lien Waivers

Posted by Tara McAdams on 11/19/18 9:27 AM

Complicated and multi-faceted endeavors with a large number of involved parties, construction projects encompass a broad range of potentially risky points that can result in grave financial consequences if the project is managed improperly. Lien waivers certainly fall into this risk category.

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Topics: Construction Loan Management Software, Construction loans, Construction Finance Management

The Basics of Reallocations and Change Orders

Posted by Tara McAdams on 10/28/18 3:39 PM

Construction projects are complicated endeavors with numerous participants and processes. This is why it is nearly impossible to predict the exact amount of costs involved. Regardless of the amount of time and attention dedicated to budget planning, no matter how big or small your construction project, you will likely deviate from the initial plan. Chances are that, somewhere down the line, some things will need to be modified. That’s where change orders and reallocations come in.

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Topics: Construction Loan Management Software, Construction loans, Construction Finance Management

The Basics of Stored Materials in Construction

Posted by Tara McAdams on 10/12/18 11:23 AM

Construction projects and loans obtained to finance them contain a number of articles that may seem trivial at first but can lead to serious complications and problems if not given proper care and planning. Stored materials are a perfect example, both from the lender and borrower perspective as well as when dealing with contractors.

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Topics: Construction Loan Management Software, Construction loans, Construction Finance Management

The Basics of Retainage

Posted by Tara McAdams on 10/5/18 3:53 PM

What is Retainage?

Retainage is the withholding of a portion of the funds that are due to a contractor or subcontractor until the construction project is finished. It is meant to serve as a financial incentive and an assurance that the contractor will complete the project in a satisfactory manner.

Retainage has been a standard practice in construction projects in the U.S. for a full century. Nowadays, it is a requirement on practically all construction loans. On public construction projects, retainage is prescribed by state laws with fixed percentages and release conditions, while on private projects it is regulated by the terms of the contract.

In the realm of construction loans, retainage is a bit of a controversial term. It is often painted as a burden placed on the owners and contractors by the lending institution, even though it primarily serves to provide added assurance that the construction project will be completed. But, before we get ahead of ourselves, let’s first define what we’re talking about.

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Topics: Construction Loan Management Software, Construction loans

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Contract Simply Construction Payments Report 2018

Contract Simply Kickstart Guide to Construction Loan Software

White Paper - Future-Proof Your Construction Lending Program from Contract Simply

Contract Simply Infographic on Construction Loan Administration

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