Construction recovery

Lying at the centre of salvaging building projects, as with the salvaging of businesses, is communication with all involved. Recovery, also termed salvage or rescue, takes place mainly in the specialist departments of banks or finance houses. Specialist and technical knowledge in sufficient depth is not always to be found at any given time to correctly interpret the information and reach decisions on that basis.
Reasons why a rescue may be necessary:

• technical reasons
  
• uninsured losses
  
• build quality does not meet the quality ordered
  
• standards and regulations were not systematically observed, e.g. fire prevention, sound insulation
  
• incorrect estimates of marginal conditions e.g. construction site
  
• commercial reasons
  
• calculation bases wrong
  
• management mistakes
  
• cross-company crises
  
• market problems
  
• other reasons
  
• contractor’s death
  
• criminal abuses
  
• sabotage
  

The best way to avoid the need for a project rescue is, without doubt, the early integration of a construction audit, so that for each point in time, being able to assess objectively and to guide the agreed decisions, provided target/actual data and progress of the project. Any guidance should always only be given by the contractor’s management and not by financial houses and banks involved in the project. These must, under all circumstances, avoid assuming any position of quasi-management. If a project ever becomes derailed, it is extremely important that it is intervention is taken immediately, courageously and consistently. Every delay makes rescuing the project that little bit more difficult. From immediate reaction to crises of whatever kind, financial losses for all involved can be averted.

Target groups:

• self-build constructors
  
• institutional and public constructors
  
• creators/general contractors
  
• banks and finance houses