Common construction loan mistakes in Calgary

TLDR

Construction loans can make or break your Calgary projects. Common mistakes include poor cost estimation, ignoring lender requirements, skipping contingency funds, overlooking permits, and starting without secure financing. Proper planning, knowledge, and tools like Bolster’s estimating software help keep projects on track.

1. Poor Estimation: The Root of Cost Overruns

Many Calgary builders struggle with budgets because total project costs aren’t accurately estimated. A miscalculation here can derail your timeline and finances.

Pro Tip: Use Bolster’s estimating software for precise project cost estimates. For a deep dive, check out Mastering the Art of Construction Estimating.

2. Not Understanding Lender Requirements

Calgary lenders often have unique criteria for construction loans. Missing a requirement can delay approvals and slow your project.

Pro Tip: Familiarize yourself with Calgary-specific lenders to avoid unnecessary setbacks.

3. Skipping Contingency Funds

Unexpected costs happen especially with Calgary’s unpredictable weather. Projects without contingency funds can quickly go over budget.

Lesson Learned: Always set aside a safety net to cover unforeseen expenses. It saves stress and keeps your project moving.

4. Ignoring Local Regulations and Permits

Calgary has its own construction rules and permit requirements. Overlooking them can cause costly delays.

Pro Tip: Research local regulations thoroughly and factor permit costs and timelines into your project estimate.

5. Overconfidence: Starting Without Secured Financing

Even experienced contractors can make the mistake of starting a project before all funding is confirmed. This can lead to halted work and financial strain.

Pro Tip: Ensure your financing is fully secured before breaking ground to maintain peace of mind and project momentum.

Conclusion

Construction in Calgary is booming, but missteps with loans can set projects back weeks or months. Avoid poor estimation, skipped contingencies, and overlooked regulations, and always secure financing before starting.

Tools like Bolster help contractors estimate accurately, plan for contingencies, and streamline project budgets, keeping Calgary projects on track and profitable.

For more tips on winning more jobs and staying ahead in the Calgary construction scene, explore Bolster’s resources and insights.