I understand there are unforeseeable events no one can plan, but what should I expect as a “common” delay in a construction project? How often should the project sponsors communicate delays? What is an unacceptable delay?
Answers
Natalia Morozova
EB-5 Immigration attorneysAs far as common delays. Here are some answers:
1. *City permitting & zoning approvals* – especially in larger cities
like New York
2. *Senior construction loan syndication* – issues with non-EB-5
financing for the project
3. *Supply-chain & labor shortages* – global material shortage, shipping
delays and tariffs.
4. *Weather & change orders* – like hurricanes, excessive snow,
flooding.
Here is the approximate communication schedule:
*Monthly* (preferred)Short construction update + photos/video + % complete
+ funds expended vs. budget
*Quarterly *(minimum)Detailed written report: timeline update, budget
update, major milestones, risks
*Within 10 days *Any material delay (>60 days) or budget overrun (>10%)
must be disclosed in writing
*Immediately* Force majeure events, litigation, lender default, or
termination of any key contract
Hope this was helpful.
Lynne Feldman
EB-5 Immigration attorneysI would communicate monthly with the project and ask them for monthly updates so you can stay on top of any concerns. You are one of their investors and are entitled to continuing information.
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