Common construction loan mistakes in Calgary

As someone who's been deeply rooted in the construction industry, especially in the bustling city of Calgary, I've seen my fair share of ups and downs. One of the most common pitfalls? Mistakes with construction loans. Trust me, a wrong move here can set your project back weeks, even months. Let's dive into some common blunders to watch out for.

1. The Big One: Poor Estimation

When I first got started in the industry, I'd frequently come across fellow builders who'd scratch their heads, wondering why their project was going over budget. The culprit? Most of the time, it boiled down to an inaccurate estimation of the total project cost. As we always emphasize at Bolster, a proper estimation isn't just crucial - it's the backbone of your entire project. For anyone looking to master this art, the Mastering the Art of Construction Estimating post is a goldmine.

2. Not Doing Your Homework on Lender Requirements

Did you know lenders in Calgary have their unique requirements? I learned this the hard way during one of my earlier projects. It was a minor hiccup, but it set me back a week! Since then, I've been proactive in understanding what each lender looks for, ensuring a smoother loan process.

Pro Tip: Familiarize yourself with Calgary-specific lenders. Their requirements might differ from what you're used to elsewhere.

3. Skipping Out on Contingency Funds

Oh boy, this one's a classic. We once undertook a project where the client didn't set aside a contingency fund. You guessed it, Calgary's unpredictable weather did its thing, and we had unexpected expenses. Always have a safety net. Trust me, it'll save you sleepless nights.

4. Ignoring Local Construction Regulations and Permits

There's no shortcut around this. Calgary has its own set of construction regulations. I remember a pal who was hit with a delay because he overlooked some permit requirements.

5. Overconfidence: Starting a Project Without Secure Financing

A rookie mistake I see all too often. Overconfidence can be your downfall. Before breaking any ground, always ensure your funding is rock solid. It's not just about having the money; it's about having peace of mind as your project progresses.

To wrap it up, guys, construction in Calgary is booming, but it comes with its own unique set of challenges. Being informed, especially about construction loans, can make or break your project. To stay on top of your game, ensure you're equipped with the best tools, and Bolster's estimating software is one I can't recommend enough.

Remember, knowledge is power. Equip yourself, and your projects in Calgary will run smoother than you ever imagined. For more insights, don't forget to check out how to get more jobs for your construction company. Stay sharp and build on!