Construction Funding

Two doctors from a large practice made an appointment to visit Andrew one Friday afternoon. The practice was about to sign a contract for the construction of a new medical centre, literally in the next few days. By this time they were a long way down the project process; architect drawings, planning permission, and legal advice were all in place and they were keen to sign the construction contract and get started. 

The two members of the finance committee sat in front of him were concerned that whilst everything else was well organised and advanced, the financial aspects were still somewhat vague. The idea was that they would self-fund a bit each and borrow the rest. Fine as an aspiration, but Andrew was happy to confirm that it would be much better if

• they knew exactly how much they were all going to self-fund and 

• how much they would need to borrow and 

• where that borrowing would come from. 

Andrew made an emergency presentation to all the doctors in the practice that Saturday morning. Then it only took some quick calculations and a couple of phone calls. He put a detailed funding programme in place the following week, including a guaranteed bank borrowing facility, and the doctors could relax as they signed the construction contract as planned. 

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