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Evaluating, Underwriting, and Lending to Construction Contractors 1.5 Credits

Evaluating, Underwriting, and Lending to Construction Contractors 1.5 Credits

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Feb 02, 03:30 PM ET

Learning Objective

  • To explain how to analyze key contractors' accounting disclosures such as under billings, overbilling, progress billings, and the contractor job status reports.
  • To analyze how to judge your contractor’s financial condition and performance compared to industry ratios and statistics.
  • To evaluate repayment ability by projecting downside operating cash flow based on the contract status report and the contractor’s financial statements.
  • To discuss the key underwriting elements of loans to contractors to determine if there is sufficient cash flow, collateral, and guarantees to repay in full, on time, and as agreed

Course Overview

Lending to construction contractors is a risky business. 

The construction industry accounts for 10 to 20% of the local economy, so extending credit thoughtfully to this sector benefits both your organization and the market you serve. Despite construction lending having the ability to be profitable for lenders, many avoid it because construction lending is simply more work. 

This CPE Accounting webinar will highlight how to evaluate the risk of lending to construction contractors, how to underwrite an appropriate lending structure, and how to monitor and manage credit exposure. 

Key Topics discussed in this CPE/CPD course:

  • The volatility of construction risk in economic cycles
  • Supply chain risk for contractors
  • The payment process for contractors and subcontractors
  • Contractor status report and key elements in contractor accounting and financial statements
  • Progress billings, retention, and collateral value
  • Role of sureties in providing bonds to contractors—lien priorities
  • Evaluating contractor downside cash flow, collateral, and guarantors for repayment ability
  • Useful conditions and covenants in contractor loan underwriting
  • Evaluating contractor cash flow, collateral, and guarantors

Elevate your valuation expertise with MY-CPE's top-tier CTP CE Courses, tailored specifically for professionals looking to advance in the field of Certified Treasury Professional. At MY-CPE, we pride ourselves on offering courses that not only fulfill your CPE requirements but also enhance your understanding and skills. Our comprehensive selection of CTP CE courses is designed to keep you at the forefront of valuation knowledge, ensuring you remain competitive and proficient in your career.

  • 1.5 CPE Credit of Finance for Certified Public Accountants (CPA-US)
  • 1.5 General Credit of Finance for Accountant/Bookkeeper/Tax Professionals
  • 1.5 CPD Credit of Finance for CPA in Canada
  • 1.5 CPE Credit of Corporate Finance for Certified Management Accountants (CMA)
  • 1.5 CPE Credit of Finance for Certified Valuation Analyst (CVA)
  • 1.5 PL Credit of Finance for Chartered Financial Analyst (CFA)
  • 1.5 CPE Credit of Finance for Certified Government Financial Manager (CGFM)
  • 1.5 CPD Credit for Association of Chartered Certified Accountants (ACCA)
  • 1.5 CPD Credit for Chartered Accountant - ICAEW
  • 1.5 CPE Credit of Finance for Certified Business Appraiser (CBA)/Master Certified Business Appraiser (MCBA)
  • 1.5 CE Credit of General finance principles and financial concepts for Certified FP&A Professional (FP&A)
  • 1.5 CPE Credit of Finance for Iowa Licensed Public Accountant (IA-LPA)
  • 1.5 CPE Credit of Finance for Maine Licensed Public Accountant (ME-LPA)
  • 1.5 CPE Credit of Finance for Delaware Licensed Public Accountant (DE-LPA)
  • 1.5 CPD Credit for Chartered Accountants - Ireland (CAI)
  • 1.5 CPD Credit for Chartered Accountants - Scotland
  • 1.5 CPD Credit for CPA - Ireland

  • 1.5 CPE Credit of Accounting for Certified Public Accountants (CPA-US)
  • 1.5 General Credit of Accounting for Accountant/Bookkeeper/Tax Professionals
  • 1.5 CPD Credit of Accounting for CPA in Canada
  • 1.5 CPE Credit of Financial Accounting for Certified Internal Auditors (CIA)
  • 1.5 CPE Credit of Accounting for Certified Fraud Examiner (CFE)
  • 1.5 CPE Credit of Financial Reporting for Certified Management Accountants (CMA)
  • 1.5 CPD Credit of Financial Reporting for Accredited in Business Valuation (ABV)
  • 1.5 CPE Credit of Financial accounting for Certified Valuation Analyst (CVA)
  • 1.5 CPD Credit of Financial Reporting for Certified Financial Forensics (CFF)
  • 1.5 PL Credit of Accounting for Chartered Financial Analyst (CFA)
  • 1.5 CPE Credit of Accounting for Certified Government Financial Manager (CGFM)
  • 1.5 CPE Credit of Accounting for Internal Audit Practitioner (IAP)
  • 1.5 CPD Credit for Association of Chartered Certified Accountants (ACCA)
  • 1.5 CPD Credit for Chartered Accountant - ICAEW
  • 1.5 CPE Credit of Financial accounting for Certified Business Appraiser (CBA)/Master Certified Business Appraiser (MCBA)
  • 1.5 CE Credit of Financial accounting concepts for Certified FP&A Professional (FP&A)
  • 1.5 CPE Credit of Accounting for Iowa Licensed Public Accountant (IA-LPA)
  • 1.5 CPE Credit of Accounting for Qualification in Internal Audit Leadership (QIAL)
  • 1.5 PL Credit of Accounting for CIPM
  • 1.5 CPE Credit of Accounting for Maine Licensed Public Accountant (ME-LPA)
  • 1.5 CPE Credit of Accounting for Delaware Licensed Public Accountant (DE-LPA)
  • 1.5 CPD Credit for Chartered Accountants - Ireland (CAI)
  • 1.5 CPD Credit for Chartered Accountants - Scotland
  • 1.5 CPD Credit for CPA - Ireland

Additional Information

Credits

1.5

Course Level

Basic

Instructional Method

QAS Self Study
Group Internet Based

Pre-requisites

None

Advance Preparation

None

NASBA APPROVED

MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478

MY-CPE LLC (Sponsor Id#: 143597) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors.

About Instructor

Dev Strischek
Dev Strischek

Principal, Devon Risk Advisory Group, LLC

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A frequent speaker, instructor, advisor and writer on credit risk and commercial banking topics and issues, Dev is principal of Devon Risk Advisory Group and engages in consulting, speaking and training on a wide range of risk, credit, and lending topics. As former SVP and senior credit policy officer at SunTrust Bank, Atlanta, he was responsible for developing, implementing, and administering credit policies for SunTrust's wholesale lines of business--commercial, commercial real estate, corporate investment banking, capital markets, business banking and private wealth management. He also spent three years as managing director and credit approver in SunTrust's Florida commercial lending and corporate investment banking areas, respectively. Prior to SunTrust, Dev was chief credit officer for Barnett Bank's Palm Beach region. Besides stints at other banks in Florida, Kansas City, and Ohio, Dev's experiences outside of banking include CFO of a Honolulu construction company, combat engineer officer in the U.S. Army, and college economics instructor in Hawaii, Missouri, and Florida. A graduate of Ohio State University and the ABA Stonier Graduate School of Banking, he earned his M.B.A. from the University of Hawaii.

Dev serves as an instructor at the Stonier Graduate School of Banking, the Southwestern Graduate School of Banking, and the American Bankers Association's (ABA) Commercial Lending School. His school, conference, and workshop audiences have included participants drawn from the ABA, RMA, OCC, Federal Reserve, FDIC, FFIEC, SBA, the Institute of Management Accountants (IMA) and the AICPA.  He worked with RMA to develop, implement, and teach its Critical Thinking course.

Dev has written about credit risk management, financial analysis and related subjects for the ABA's Commercial Insights, the Risk Management Association's RMA Journal, the IMA’s Strategic Finance and other business professional journals. He is the author of Analyzing Construction Contractors and its related RMA workshop. A past national chair of RMA and former Florida Chapter president, Dev serves as a member of the RMA Journal's advisory board.  He represented the banking industry as a member of the Financial Accounting Standards Board’s Private Company Council, which reviews and recommends changes to existing and proposed generally accepted accounting principles that make them more cost-effective for privately held companies.  Finally, he has consulted on credit risk issues with banks in Morocco, Egypt, and Angola through the US State Department's Financial Service Volunteer Corps (FSVC).

On Demand FAQs

What is Self Study (QAS)?

Self Study QAS (Quality Assurance Service) is a NASBA and other regulatory bodies approved program designed for Professionals to complete their Continuing Professional Education credits through self-paced, interactive courses that meet the highest standards of quality and compliance. We are approved by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other regulatory bodies.

How do I earn CPE credits through self-study?

To earn CPE credits, you must complete the self-study course, pass the required assessments, and submit the necessary documentation. Credits are awarded based on the completion of course hours and successfully passing the assessments.

Are the self-study courses approved by NASBA and other regulatory bodies?

Yes, all our self-study courses are approved by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other regulatory bodies, ensuring they meet the rigorous standards for quality and educational content set by these organizations.

What are the requirements to maintain compliance with self-study courses?

To maintain compliance, you must follow the guidelines set by NASBA and other regulatory bodies, which include completing the course within the specified timeframe, passing the assessments, and keeping accurate records of your learning activities.

How can I access my course completion certificates?

After successfully completing a self-study course and passing the assessments, you can access and download your course completion certificates from your account dashboard on our platform. These certificates are recognized by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other regulatory bodies for compliance and reporting purposes.

How are credits reported to governing bodies?

We issue instant credit certificates, ensuring they are valid for presentation to governing bodies. Typically, we report IRS, CTEC, CFP, IDFP, IWI, VBOA Ethics credits within 7 days – the fastest in the industry.

Live Webinar FAQs

What is a Live Webinar Group Internet-Based Credit?

A Live Webinar Group Internet-Based Credit is an interactive, real-time online seminar where professionals can earn Continuing Education credits by participating in live sessions led by experts in various fields. These sessions meet the standards set by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other regulatory bodies.

How do I earn credits through live webinars?

To earn credits, you must attend the entire live webinar, actively participate in any polls or questions, and complete any required evaluations or assessments. Credits are awarded based on your attendance and participation in the live session.

Are the live webinars approved by NASBA and other regulatory bodies?

Yes, all our live webinars are approved by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other regulatory bodies, ensuring they meet the high standards for quality, interactivity, and educational content set by these organizations.

What are the requirements to maintain compliance with live webinar courses?

To maintain compliance, you must adhere to the guidelines set by NASBA and other regulatory bodies, which include attending the full duration of the webinar, participating in interactive elements, and completing any post-webinar evaluations or assessments.

How can I access my webinar completion certificates?

After successfully attending a live webinar and fulfilling all participation requirements, you can access and download your completion certificates from your account dashboard on our platform. These certificates are recognized by NASBA, IRS, CFP Board, HRCI, SHRM, Payroll Org, FP Canada, and 25+ other regulatory bodies for compliance and reporting purposes.

How are credits reported to governing bodies?

We issue instant credit certificates, ensuring they are valid for presentation to governing bodies. Typically, we report IRS, CTEC, CFP, IDFP, IWI, VBOA Ethics credits within 7 days – the fastest in the industry.

Ratings and Review

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JB

Jessica Berry, CMA

I really enjoyed the detail in this presentation. I live in construction accounting world and manually pull these calcs regularly. This detail was just what I needed and glad to have a good resource in the future for lending considerations.

RB

Richard Blakeley, CPA (US)

Very useful for discussion with my construction clients

Inclusions
  • Multiple Credits
    Multiple Credits

    Earn continuing education credits with flexibility. Choose from live webinars, on-demand courses, e-books, or podcasts to fit your learning style and schedule.

  • Certifications & Reporting
    Certifications & Reporting

    We issue instant credit certificates, ensuring they are valid for presentation to governing bodies. Typically, we report IRS, CTEC, CFP, IDFP, IWI, VBOA Ethics credits within 7 days - fastest in the industry.

  • Credit Tracker
    Credit Tracker

    Track and manage your compliance across all 50 states and over 100 designations. Our Credit Tracker keeps your CPE credits and compliance requirements always up-to-date.

  • Certificate Vault
    Certificate Vault

    Certificate Vault to upload, manage, and access certificates earned from various sources and an integrated credit tracker, allowing users to monitor and manage their credits conveniently for compliance.

  • Compliance Reminders
    Compliance Reminders

    Stay current with our automated reminder system. Receive timely alerts for your CPE requirements, ensuring you never miss a deadline.

  • Mobile App Access
    Mobile App Access

    The myCPE Mobile App allows you to learn on the go, providing access to educational content on Android and Apple iOS devices. You can learn anytime and anywhere, making it convenient for busy schedules.

  • Live Support
    Live Support

    Our support team is available via live chat, email, and phone from 9 AM to 5 PM ET. We're here to help with any questions or issues, ensuring you have a seamless experience.

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