111036 Resource 78777 78860 78860 1135025712630 1135048847176 Controlled Commercial Construction Loans and the General Contractor

The Financial Strength and Experience of the General Contractor That You Choose is Very Important

<p>When a bank looks at any commercial construction loan request, especially a large request, they will usually look very closely at the general contractor.&nbsp; </p><p>The first question the bank is likely to ask is whether&nbsp;the general contractor has the experience to complete the project.</p><p><strong><em>Construction loan applicants&nbsp;should be sure to include in their loan&nbsp;package both a CV and a sales brochure on the general contractor.</em></strong></p><p>As a lender, it is always impressive and helpful to receive a color glossy sales brochure on the general contractor with a description of the&nbsp;projects built by the general contractor and color photos of the completed buildngs.&nbsp;&nbsp; </p><p>The construction lender will also ask whether the general contractor has the&nbsp;financial resources to cover any cost overruns and construction disruptions, like supply shortages, weather issues,&nbsp;and labor disruptions.</p><p><strong><em>The construction loan applicant should&nbsp;therefore include a financial statement on the general contractor.</em></strong></p><p>Most banks financing large commercial projects will require the general contractor to sign an <strong><em>AIA Fixed-Price Contract</em></strong> with the developer and then assign that building contract to the bank.</p><p>Cost overruns are becoming serious concerns these days, with the cost of asphalt, steel, and land increasing at 15% annually.&nbsp; It is the financial responsibility of the general contractor to absorb these cost overruns.&nbsp; Therefore the financial strength of the general contractor is a very serious concern.</p><p>You can find hundreds of commercial construction lenders on C-Loans.com.</p><p><span style="font-size: 10pt; font-family: Arial;"><span style="color: rgb(102, 51, 153); font-weight: bold;"><br /></span><p /></span></p> 9 application/xml false commercial construction loans commercial financing commercial loan commercial mortgage commercial real estate loan. construction loan Apply to Hundreds of Commercial Construction Lenders http://www.c-loans.com/onlineapp Mozilla/5.0 (Windows; U; Windows NT 5.1; en-US; rv:1.7.5) Gecko/20041107 Firefox/1.0 71.50.240.27 71.50.240.27 GBlackburne false true false false true 198508 false false true false false false true 78777 blog blogsite/CLoans/web