Medro Updates

Construction Overruns: Connect the Budget Revision to the Next Capital Decision

By Don McClain

By Don McClain | Founder & Principal, Medro Advisors

A construction overrun deserves a coordinated review of remaining work, available funding and the decisions needed to finish. Reconcile unpaid invoices, contracted work, unpriced scope and carrying costs to one reporting date. Keep proposed financing and budget changes separate from confirmed sources and approvals. Don McClain’s new construction-financing series explains how to rebuild the cost-to-complete plan, test a scope reduction and assign responsibility for unresolved changes. Medro Advisors encourages owners to start with a non-confidential project overview and timing. No financing or closing outcome is guaranteed.