Analyzing, Underwriting and Lending to Construction Contractors

Recorded On: 09/19/2022

This on-demand webinar is available for 14 days after purchase.

Lending to construction contractors is risky business, but this session will show you how to evaluate that risk, underwrite an appropriate lending structure and manage credit exposure. The construction industry accounts for 10% to 20% of a local economy, so extending credit thoughtfully to this sector benefits both your organization and the market you serve. 

Topics discussed include:

  • Volatility of construction risk in economic cycles
  • Supply chain risk for contractors
  • Payment process for contractors and subcontractors
  • Contractor status report, and key elements in contractor accounting and financial statements
  • Progress billings, retention and collateral value
  • Role of sureties in providing bonds to contractors—lien priorities
  • Evaluating contractor downside cash flow, collateral, and guarantors for repayment ability
  • Useful conditions and covenants in contractor loan underwriting
  • Evaluating contractor cash flow, collateral and guarantors
  • About the Speaker
    Dev Strischek, Devon Risk Advisory Group Dev Strischek is principal of Devon Risk Advisory Group and speaks on a wide range of credit risk, commercial banking and lending topics. As former SVP and senior credit policy officer at SunTrust Bank, Atlanta, he was responsible for developing, implementing and adminsistering credit policies for SunTrust’s wholesale lines of business—commercial, commercial real estate, corporate investment banking, capital markets, business banking and private wealth management. He also spent three years as managing director and credit approver in SunTrust's Florida commercial lending and corporate investment banking areas, respectively. Prior to SunTrust, Dev was chief credit officer for Barnett Bank's Palm Beach market. Besides stints at other banks in Florida, Kansas City and Ohio, Dev's experiences outside of banking include CFO of a Honolulu construction company, combat engineer officer in the U.S. Army, and college economics instructor in Hawaii, Missouri and Florida. A graduate of Ohio State University and the ABA Stonier Graduate School of Banking, he earned his M.B.A. from the University of Hawaii. Dev serves as an instructor at the Stonier Graduate School of Banking, the Southwestern Graduate School of Banking and the American Bankers Association's (ABA) Commercial Lending. His school, conference and workshop audiences have included participants drawn from the ABA, RMA, OCC, Federal Reserve, FDIC, FFIEC, SBA, the Institute of Management Accountants (IMA) and the AICPA. Dev has written about credit risk management, financial analysis and related subjects for the Risk Management Association's RMA Journal, and other business professional journals. He is the author of Analyzing Construction Contractors and its related RMA workshop. A past national chair of RMA and former Florida Chapter president, Dev serves as a member of the RMA Journal's advisory board. He also serves on the advisory board of the Atlanta Chapter of the Professional Risk Managers' International Association (PRMIA), and he has consulted on credit risk issues with banks in Morocco, Egypt and Angola through the U.S. State Department's Financial Service Volunteer Corps (FSVC). He also served on the Private Company Council (PCC) of the Financial Accounting Standards Board (FASB); the PCC reviews current and proposed generally accepted principles (GAAP) and recommends revisions that simplify their use for privately held organizations.   Webinar Access Login instructions are sent to the registered attendees email address in a calendar invitation at the time of registration. Please email Conventions_Info@nacm.org with questions.

 

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Analyzing, Underwriting and Lending to Construction Contractors
Open to view video.
Open to view video. This on-demand webinar is available for 14 days after purchase. Lending to construction contractors is risky business, but this session will show you how to evaluate that risk, underwrite an appropriate lending structure and manage credit exposure. The construction industry accounts for 10% to 20% of a local economy, so extending credit thoughtfully to this sector benefits both your organization and the market you serve. Topics discussed include: Volatility of construction risk in economic cycles Supply chain risk for contractors Payment process for contractors and subcontractors Contractor status report, and key elements in contractor accounting and financial statements Progress billings, retention and collateral value Role of sureties in providing bonds to contractors—lien priorities Evaluating contractor downside cash flow, collateral, and guarantors for repayment ability Useful conditions and covenants in contractor loan underwriting Evaluating contractor cash flow, collateral and guaranto