Avoiding Draw Request Disputes With Your Lender Part 2
Most projects move along smoothly without any hiccups with the draw requests. However, it is critical that you are proactive about avoiding these types of disputes to ensure your project keeps moving along as scheduled. If you are experiencing a delay in getting loan funds and are concerned about the implications it can have on your project, please speak with an Orlando construction attorney.
Now that you are familiar with the risks that draw requests could impose on contractors as discussed in part one of our article, we will share tips to help you avoid these types of disputes with your lender.
Only Sign Realistic Loan Agreements
We understand a contractor’s urgency to get the ball rolling on a construction project, but contractors must be certain they are signing an agreement that is practical. You don’t want to be shocked down the line when a draw request is denied. Will the draw agreement work for your project? If the terms do not quite work for you or you are not sure of the terms, do not hesitate to get advice from key team members or an Orlando construction attorney before you sign any agreement. This will help safeguard you from an unnecessary disputes down the line.
Fostering good lines of communication with the lender is paramount. Lenders have a vested interest in the success of your construction project. If your draw schedule needs a modification, you should speak with your lender immediately to see what type of arrangements are possible.
Be Willing to Compromise
At times the lender may not be able to meet your requests, but they may be able to meet halfway. Sometimes a compromise will deescalate a potential dispute. Try working with your lender to meet their requirements. You may have to readjust your schedule to meet their demands of the lenders.
Speak With an Attorney
Conflicts are a normal part of the construction. It is wise to have an Orlando construction attorney on standby to help you navigate more serious conflicts. If you are negotiating a draw request schedule or are involved in a dispute, it is to your benefit to consult with a legal expert who can provide you with sound advice for resolving the conflict with your lender amicably.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.