The Need for Construction Risk Management in Texas

November 8, 2023

Headshot of John Moran

JOHN MORAN

Increasing Demand for New Construction in Texas

It is no secret that we are currently seeing record-breaking supply chain shortages across the country. With an increase in the price of material goods and labor as well, it may seem like tough times ahead for the construction industry. However, these material woes are not stopping development plans in the state of Texas. With large corporations such as Tesla, Apple, and Facebook relocating to the state, specifically Austin, there is no wonder why Texas is seeing a drastic increase in population, jobs, and wages. The state is booming and seeing not only an increase in population but a substantial amount of money being put into the development of new construction.

According to the latest US Census, Texas is ranked #1 in regards to the number of residents added from 2020 to 2021. Calculated to be roughly 850 new residents per day, Texas developers and lenders notice this growing population and the demand for housing and commercial development that comes along with it.  Based on the current reporting by Virtual Builders Exchange (VBX) there is $535 billion in planned Texas construction; $3.7 billion of this being housing and multi-family development and $101.2 billion in commercial construction. If these projects materialize, this could mean a great year ahead for Texas construction and the lenders, syndicators, and investors involved.

 

The Importance of Construction Risk Management

When you choose Moran Consultants for your construction risk management services, you can feel confident knowing that your project is in capable hands with several services to lower your financial risk. In-depth and upfront reviews of contract language, loan terms, cost schedule reviews, and proper project procurement are just a few of the services that we provide to manage risk. We also work together with project teams throughout the construction process to recognize potential issues as they arise.

When it comes to managing risk, communication is key. To help facilitate this communication, we provide monthly site inspections that are coordinated with the project team. We gather information about potential change orders and budget issues. In addition, we review documentation including current applications for payment, testing lab reports, monthly project logs, and more. Clients also receive detailed monthly progress reports of site inspections to give them a clear picture of the status of the work being performed. These are just some of the ways Moran Consultants keeps clients informed about the progress of their projects.

 

How Moran Consultants Can Help Mitigate Construction Risk in Texas

Moran Consultants has long-standing expertise in assisting lenders, syndicators, and investors in mitigating risks associated with construction. Our 50 years of industry experience have afforded us an incredible range of projects priced from several hundred thousand dollars to several hundred million dollars and within diverse sectors including high rise, retail, office, entertainment, education, multi-family, and residential. With multiple projects in Texas and across the country, we have a unique perspective on national and local market trends based on our extensive database of project information, allowing us to make accurate and timely comparisons. Our dedicated and responsive team consistently meets national customer demands, with local market knowledge.

Want to learn more about how Moran Consultants can help mitigate construction risk on your next project? Call us at 866-545-3350 or contact us online to learn more about our construction loan monitoring services. Experience peace of mind knowing that your investment is protected.

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Headshot of John Moran

JOHN MORAN