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SBA Construction Risk Management

Manage risk with a proactive and economical bond alternative.

Construction Risk Management is a comprehensive and proactive risk mitigation tool that facilitates constant communication between the engineering and accounting functions and helps ensure that payments are in line with construction progress.

Construction Risk Management is recognized by many government agencies, including the SBA, as an alternative to bonds. Per the SBA’s SOP , “If the construction component…is more than $350,000,… (the) lender must obtain from the borrower: Evidence that the contractor has furnished a 100% performance and labor and materials payment bond;…” However, “SBA has granted a blanket waiver on the requirement of a performance bond when a third party in the business of providing construction management services controls the disbursement of the proceeds”.

Partner’s Construction Risk Management team offers a variety of services for SBA clients. Services Include: