Beacon Consulting Group has long provided construction loan monitoring services to leading banks and other financial institutions. Earlier this year, Beacon started work on a construction loan monitoring project for a leading privately-held bank based in New York City. The project is a large mixed-use (residential / commercial) development project located in Parsippany, NJ. Beacon's team was retained to provide construction loan monitoring during Phase 1 site development work related to the PARQ project in NJ.
One of the most important consulting services that Beacon provides to our clients is performing Cost-to-Complete (CTC) Analyses for ongoing construction projects. Having a good understanding of where a project stands financially is critically important for all project stakeholders, especially for Surety companies dealing with troubled projects. Developing a high-quality CTC Report for a complex construction project requires skill, experience, and a good methodology. Click below for full article...
I hope you are having a great fall. It's such a beautiful time of year here in the Northeast U.S., where the weather is still mild, but the fall foliage colors are peaking and so many sports and outdoor activities are in full swing. The fall is extremely busy in the construction industry, where there is a race to get many exterior project tasks completed (at least in Northern states) before the snowy weather and freezing temperatures arrive. Beacon is staying very busy, managing a wide variety of interesting construction consulting projects across the U.S. Check out this month's E-news...
The Catskill Aqueduct Repair & Rehabilitation Project is a $158-million water tunnel repair, cleaning, and rehabilitation project being undertaken by New York City Department of Environmental Protection (DEP). This is an important, high-profile project because the aqueduct is a critical part of New York City’s water supply system. The project, which started in late 2018, involves the rehabilitation of a 74-mile stretch of the aqueduct by cleaning the inside and repairing a number of leaks, replacing numerous valves at chambers connected to the aqueduct, and performing other structural and mechanical upgrades to ensure the proper function of the structure for many years to come...
Mike Kinahan is a Project Manager in Beacon's Medford, MA office. We asked Mike to weigh in on some of the ways Construction Project Cash Flow issues can get contractors in trouble and what can be done to head off cash-flow-related problems before they get out of hand.
Question: Mike, how do contractors typically get in trouble when it comes to managing cash flow on construction projects?...
Beacon Consulting Group has been providing independent construction loan monitoring services for a new office building construction project underway in the Chelsea neighborhood of Manhattan. In recent weeks, the project reached a significant milestone as the 12-story building's superstructure was topped out. New York City-based GDS Development is building the Class A tower in partnership with Klövern AB, one of Sweden's largest real estate companies. The project is located at the northwest corner of 7th Ave. and 28th Street, just south of Penn Station and a short distance east from the High Line and Hudson Yards...
Subcontractor Default Insurance (SDI) is an insurance product which can be very useful for construction companies seeking to reduce their risk related to subcontractors who might default on a project. SDI protects general contractors (GCs) with insurance coverage for direct and certain indirect costs in the case of a subcontractor default. Beacon provides a wide range of services to insurance companies to mitigate their risk both in underwriting an account or adjusting a claim related to Subcontractor Default Insurance.
Beacon Consulting Group has extensive experience undertaking construction defects assessments for insurance companies and sureties. One example of our experience in this area is a project we did for an insurance client which entailed claims review, construction defects assessment, and other construction consulting services related to structural issues found at a student housing / apartment complex located in Charlotte, NC. The associated project consisted of the construction of five new buildings containing a total of 189 apartments. These apartments are used primarily for student housing. During a large party in one of the units, the ceiling began to sag. As a result, it was discovered there were deficiencies in the wooden structural trusses.
Although Covid-19 has affected various parts of the country with different levels of severity, it's now critically important to have a Covid-19 action plan at many construction sites—at least until the pandemic subsides or a vaccine is developed. In addition to protecting on-site personnel, helping to stem the spread of the virus, and complying with local, state, and federal directives, it's necessary to have an appropriate Covid-19 policy and action plan for financial and liability reasons. Preventing an outbreak on the job site not only helps to keep workers safe, but can help prevent a construction project from being shutdown by local authorities. Beacon's team can help developers, contractors, Surety companies and other stakeholders by reviewing (and/or helping to develop) Covid-19 action / response plans. At a high level, a good Covid-19 policy and action plan consists of all of the following...
Like many industries, the construction industry has been significantly affected by the current pandemic. In some areas, construction projects were shutdown for weeks or months, leading to significant delays and the push-back of project milestones and completion dates. In addition, slowdowns in material deliveries, new job site procedures, and personnel exposure to the virus have further impacted schedules. All of these factors can put financial strains on developers, GCs, and subcontractors and can potentially lead to disputes with project owners who may seek liquidated damages or other contract-specified penalties for late completion of a construction project...
