The Word is “Transparency” – Get Used to it

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Attention General Contractors, Developers and anybody else within the sound of my blog(?) After the dust settles from our economy’s current meltdown and you are able to once again acquire the credit necessary for your next project, be ready for some serious changes when it comes to project transparency.

  • Say goodbye to your bank’s drive-by progress reports. Banks are going to go into “hyper drive” when it comes to guaranteeing that their projects are squeaky-clean and on time. Expect your reporting requirements to go way up and the bank’s leash to get real short.
  • If you didn’t like expense and hassle of 3rd-Party Peer Review for condos, you’re not going to be too happy because your insurance carrier to going to expand this requirement. Don’t be surprised if the practice makes its way to other types of construction. Yes, commercial and industrial markets, I’m talking to you.
  • Developers, if you thought HOA’s were in a bad mood before, you ain’t seen nothin’ yet. New condo buyers are going to be pretty sour after they are forced to downgrade from their original choices thanks to tightened mortgage credit.
  • Also Developers, expect to pay for the preparation of homeowner manuals for every unit you sell. You insurance company is finished covering for you after you’ve skimped on educating new homeowners on the care of their new high-tech habitat. Insurers have paid a lot of money over the years to cover homeowner claims for leaks, mold and structural damage that could have been avoided had their home been properly cared for.  The days of tossing them keys with a few appliance manuals on closing day are over.

In short, the days of completing projects using winks, nods and shortcuts are over. Those who buy, finance and insure your work are going to expect a transparent process with no surprises at the end. Get used to it.

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