Construction loan approval conditions worth attaching to a GMP
Construction loan approval conditions cost the borrower a negotiation and cost the lender nothing. Seven of them close most of the exposure before closing.
Contracts and delivery methods
CM at risk, the standard forms, and the clauses that decide who carries which risk.
What this covers
The questions in this category
- CM at risk for the party paying
- The forms an owner should read first
- Delivery methods compared on risk
- Shared savings, and what shrinks the pool
- Fee, general conditions and general requirements
- Retainage, and when it is released
Published
6 pieces
Underwriting construction risk an investor cannot see from the model
Underwriting construction risk an investor never manages directly is a documents exercise. The model cannot show you what the contract quietly left open.
Construction insurance owner requirements, and who is named on what
Construction insurance owner requirements are a list of policies, limits and named parties, and the gaps between them are where an uninsured loss sits.
Shared savings clause construction contracts use, and what shrinks the pool
A shared savings clause construction contracts carry looks generous and pays little, because four mechanisms reduce the pool before anybody divides it.
CM at risk explained for owners, and what you are actually buying
CM at risk explained for owners: what the construction manager carries, what stays with you, and the three clauses that decide the difference on your job.
GMP vs lump sum vs cost plus, read from the owner side of the table
GMP vs lump sum vs cost plus is a question about where the risk sits and what you get to see. Each form trades visibility against certainty differently.