The plan and cost review (PCR) can help commercial lenders mitigate their risk on construction loans. The PCR helps to ensure that plans are constructible, that costs are realistic, and that payments to the contractor are scheduled appropriately. Commercial construction is a complex and risky business. Lenders operating in this space must weigh the value…
Imagine this. You’ve just taken over management of a new facility. The roof was replaced six months ago, so it’s the last thing you think you have to worry about. Except it’s actually the first thing you have to worry about. The roof begins leaking badly right after you take over, and a quick inspection…
Low sloped (commonly referred to as flat roofs) commercial roof materials have come a long way in the 35 years I’ve been in the business. What was standard practice when I began my career is no longer considered best practice, and some of the new materials blow the old ones out of the water when…
Though it’s hardly the sexiest thing about your house, the roof is one of your home’s most important components. A well-built roof will withstand wind, weather, rain, and storms to keep your home dry and snug year-round. And, a well-chosen roof type for your home can enhance the appearance and value of your home. This…
Drones, also known as unmanned aerial vehicles (UAVs), used to be just a fun toy for hobbyists. Today, they’re an integral part of the engineering and construction industry. They’re used on project sites, as well as in assessing property condition and evaluating damage. For insurance companies and insurance adjusters, this means you need to know…
Over the past five years, unmanned aerial vehicles (UAVs, also known as drones), have become increasingly common in the assessment industry. Among their many applications, one of the most valuable is in conducting roof assessments. When an insured roof is damaged, either by a natural disaster or human-caused incident, the insurance agent is one of…
Construction contracts have a tangible impact on the project’s risk to the lending institution. And unfortunately, not all construction contracts are created equal. When performing due diligence on a construction loan, lenders should always require a construction contract review as part of an overall plan and cost review (PCR). At GLE, we review hundreds of…
Construction projects carry risks for everyone involved, from the owner to the general contractor to the lender. Good construction funds control is one of the ways that lenders mitigate financial risk during the construction process, and ensure a successful and on-budget project. What Is Construction Funds Control? Construction funds control is the process by which…
When it comes to construction loan consulting, many banks still operate on a one-off basis, with each individual branch or loan officer hiring whichever local contractor or consulting firm they prefer. This can work fine for small banks, but if your organization’s book of business spans beyond the geographic footprint of a few branches, you’re…
