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Originally Posted by chron
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A few utterly hilarious things from these articles:
1) 'Sub-trade failure' as a reason for delay. Generally a common problem on projects where they're, y'know,
not getting paid. You know how long you need to string out a sub on a huge contract for them to slap a lien on your project? A long time. It's bad business. Subs don't like screwing with the general. I wouldn't be surprised if the first couple month's cheques cleared and none of the rest. An almost $2MM electrical lien on a project that's about 15% complete means almost nobody's seen any money.
2) Unexpected cost overruns because of additional floors. I don't even know where to being with this. It isn't like one day somebody showed up to the site with an idea. Those floors would have been known about for what was probably years. That nobody bothered costing them? Or did and ignored it? I don't know which is worse.
3) Those poor people in the third article are never getting their units. Construction in Ontario is up like 12% in the last three years. If anybody thinks they're getting their units delivered at the 2011 price they paid, then everybody needs to give their heads a shake.
4) Banks don't refinance people who are in the hole on the basis of their own incompetence. Unless Mady can figure out a way to wring more money out of the purchasers and tenants, there's nothing to refinance; the value has already been set. The owners need to kick in more equity to cover the shortfall. Or, since purchasers and tenants all have signed contracts, you're depending on their goodwill. Good luck with that.