Practice Management

 View Only

Assignment of Architects Contract Lender 

09-27-2010 05:30 PM

Be very carful when signing an Assignment from the bank/lender. The Assiognments are written by the bank/lenders lawyers, and DO NOT have the best iterest of the Architects in mind. We did an Assignment about 20 years ago, which resulted in us loosing about $36,000 in fees (about $65,000 in todays dollars). We had no recourse, and the bank got a completed building, useing our contract documents. Some suggestions: 1. Talk to the Lender, and express your concerns with their 'agreement'. Be specific in you objections. 2. Tie the "Agreement" back to your contract; both in your services, and their obligations to pay for those services, in case of a default by the developer. 3. Provide a copy of your contract to the Lender/Bank as an attachment to the Assignment Agreement. 4. Provide an accounting to the Lender/Bank on the progress of your services, and the clients payments on the contract. Often the client will not like this, because they have lied to the bank/lender on your fees, or the amount that they have already paid you. NOT your problem. 5. Do not ask for anything "extra" from the lender, that you can not justify in your current contract. 6. Work directly with the Lender/Bank, and not thru the client.

Statistics
0 Favorited
15 Views
0 Files
0 Shares
0 Downloads

Related Entries and Links

No Related Resource entered.