After several strong years of home buying, inflation, lack of materials and labor we have finally hit the “PAUSE” button. CFSI is the industry leader in construction risk management for projects across the spectrum of asset classes. If you are building or renovating residential, commercial or multi-family properties, CFSI’s experienced team has seen it all and our proprietary construction management software helps improve a fragmented process in several ways.
First CFSI reviews the General Contractors license, insurance, background and bid/scope of work to make sure what they are putting on paper is feasible. By looking for the risks prior to the start of the construction you avoid many issues down the road: like contractors taking deposits and never starting; missing key elements of the project; and making large change orders and previous jobs that were uncompleted or with poor reviews. If you are using your own money or if you have a construction loan, skipping the contractor review or project feasibility process will be costly or problematic.
“Just because you pay the GC it doesn’t mean they paid their people, and YOU will be responsible for payments and have to sue the contractor.”
After the project has started it is critical to manage the contractor, be transparent, set expectations, collect paperwork, lien releases (fund control or draw management). Each state has specific paperwork required to show proof of payment to subs and suppliers. Just because you pay the GC it doesn’t mean they paid their people, and YOU will be responsible for payments and have to sue the contractor. Selecting the proper GC at the start, letting them know CFSI is going to support the process, letting them know what we require to stay compliant, and providing fund management and construction loan management will allow the process to move forward.
Construction loans, more than consumer funded projects, require a fund control company with superior service and experience to work on behalf of the lender or bank. Why would anyone want to manage this process when there are subject matter experts who perform hundreds of thousands of these tasks on an annual basis? Build your dream today with the confidence that professionals with your best interests in mind are available to support your construction project.