Robert Lessman, a member of the firm's Construction practice, co-presented a breakfast seminar entitled, "It's the Economy: Cost-Effective Risk Management of Construction Financing and Its Problems," on January 19, 2010 at Petterino's Restaurant in Chicago, IL.
Seminar Overview
The world of construction financing is in crisis. For banks, there is both danger and opportunity. The down turn in the economy has revealed serious flaws in risk management practices. Recent court decisions have made title companies wary of insuring against mechanics liens and have shifted the balance of power in favor of subcontractor lien claimants.
Our speakers explained the problems and offer efficient and inexpensive solutions.
Part 1: The Problems
A. The risks and their causes
B. Urban legends and other flaws in conventional wisdom
C. Out of control construction costs
D. The impact of recent court decisions.
E. The disappearing title company coverage against mechanics lien claims.
Part 2: The Solutions
A. Transaction Strategies
- Changes to Loan Documents
- Changes to Loan Funding Procedures
- Enhanced proactive defensive actions
- Steps that can be taken to control increases in construction costs
B. Work Out Strategies
- Analyzing mechanics liens for settlement purposes
- Negotiating settlements on lien claims
C. Litigation Strategies
- A cost effective litigation strategy
- Defending against mechanics liens and other claims