When financing a construction project, one of the biggest concerns for lenders is ensuring there are enough funds to complete the job. Unexpected cost overruns, project delays, and contractor issues can lead to financial risks. That’s where a Cost-to-Complete Report becomes essential.
What is a Cost-to-Complete Report?
A Cost-to-Complete (CTC) Report is an independent analysis that evaluates the remaining work on a construction project and estimates the funds needed to complete it. This report helps lenders, investors, and project owners assess whether the existing budget is sufficient or if additional financing is required.
For a deeper dive into construction cost management, check out this guide.
Key Components of a Cost-to-Complete Report
A comprehensive CTC Report typically includes:
- Current Project Status – An on-site inspection to assess the percentage of work completed.
- Budget Review – Analysis of current financials, including invoices and payments made.
- Scope of Work Assessment – Evaluation of remaining tasks and their associated costs.
- Schedule Analysis – A review of the construction timeline to identify potential delays.
- Permit & Compliance Verification – Ensuring all necessary approvals are in place for continued progress.
For best practices in construction scheduling, visit this resource.
Why Lenders Need Cost-to-Complete Reports
Lenders rely on CTC Reports to mitigate risk and make informed funding decisions. Some key benefits include:
- Prevents Underfunding Issues – Ensures there are enough financial resources to finish the project.
- Identifies Budget Shortfalls – Helps detect discrepancies between projected and actual costs.
- Reduces Risk of Abandoned Projects – Provides insight into potential risks that could cause delays or failures.
- Supports Loan Disbursement Decisions – Assists lenders in determining when and how funds should be released.
Learn more about mitigating lending risks in construction projects here.
Partnering with Experts for Reliable CTC Reports
At NWM Risk Management, we provide thorough Cost-to-Complete Reports tailored to your lending needs. Our experienced team conducts detailed inspections, reviews contracts and financials, and delivers accurate assessments to help you make confident lending decisions.
Want to learn more about how our CTC Reports can support your projects? Contact us today to schedule a consultation.
