For builders and developers, long-term real estate projects can often be challenging. From preparing the design to getting it approved by local authorities, lenders, and zoning officials, there are numerous roadblocks that can stifle progress even before ground is broken.
Other difficulties may arise. Once a project gets started, the project manager must coordinate with many contractors. Usually the bank financing the project will only pay a fraction of the full loan amount at any given time. These partial payments are known as “draws” and the lender will usually enter into a contract beforehand which stipulates when the draws will be released. If a draw is to be released upon the completion of the foundation of the building, for example, and the lender decides it will not release these funds until a city or county inspector signs off on it, this could delay the project. Often builders prepare a detailed schedule which assumes the start of one phase right after the completion of another.
Delays can cost a great deal of money and may undermine the profitability of a project. Contracts for these types of projects must be carefully drafted to protect your company from as many delays as possible. You should not enter into any such project without experienced legal counsel who can anticipate and plan for as many of these problems as possible.
At the Law Office of George “Dave” Giddens, P.C. we offer expert, dependable advice on handling construction bidding and contracting as well as disputes. Our attorneys serve Albuquerque, Santa Fe, Taos, Raton, Farmington, Gallup, Grants, Roswell, Los Lunas, Placitas, Belen and the rest of New Mexico. To make an appointment for a consultation about your particular matter, contact us online or call us at (505) 633-6298. See more at giddenslaw.com.
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