A troubled project or business can occur when either the owner or contractor is unable or refuses to continue the performance of its requirements due to insolvency, bankruptcy, force majeure or any other reason.
To minimize lender liability exposure, lending institutions utilize Synergen’s experience in resolving troubled business situations by reviewing and implementing pro-active risk control measures. While lending institutions seek to be extremely cautious not to impose “lender liability exposure” to troubled projects, typical reactions in the industry include the following:
- Lending institutions insert clauses into financing agreements that require the owner to seek project management assistance from a pre-approved list of project management consultants when a project is more than a certain percentage over budget or exceeds the original timeline by more than a certain percentage.
- Lending institutions attempt to mitigate catastrophic cost overruns to seek preventative assistance.
- By avoiding catastrophic cost overrun projects, lenders avoid being drawn into contractual settlements and associated litigation.
When a project or business is troubled, Synergen’s management experts quickly take action to implement procedures to get projects or businesses back on track. Additionally, our highly skilled team works with clients to mitigate and resolve problems while supporting progress. We are able to evaluate the situation and develop plans focused on moving forward, as well as execute these plans to ensure completion.