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  2. What are construction loans, and how do they work? - AOL

    www.aol.com/finance/construction-loans-154657152...

    The funds distribution: Unlike mortgages and personal loans that provide funds in a lump-sum payment, the lender pays out the money for a construction loan in stages as work on the new home ...

  3. What is a construction-to-permanent loan? - AOL

    www.aol.com/finance/construction-permanent-loan...

    A construction-to-permanent loan — also known as a one-time, single-close or construction-perm loan — is a type of mortgage for those building a home. It funds the purchase of land and the ...

  4. Performance bond - Wikipedia

    en.wikipedia.org/wiki/Performance_bond

    Surety bond companies attempt to predict the risk that an applicant represents. Those who are perceived to be a higher risk will pay a higher surety bond premium. Since surety bond companies are providing a financial guarantee on the future work performance of those who are bonded, they must have a clear picture of the individual's history.

  5. Little Miller Act - Wikipedia

    en.wikipedia.org/wiki/Little_Miller_Act

    Construction in East Village, San Diego. A "Little Miller Act" is a U.S. state statute, based upon the federal Miller Act, that requires prime contractors on state construction projects to post bonds guaranteeing the performance of their contractual duties and/or the payment of their subcontractors and material suppliers.

  6. Surety - Wikipedia

    en.wikipedia.org/wiki/Surety

    In finance, a surety / ˈ ʃ ʊər ɪ t i /, surety bond, or guaranty involves a promise by one party to assume responsibility for the debt obligation of a borrower if that borrower defaults. Usually, a surety bond or surety is a promise by a surety or guarantor to pay one party (the obligee ) a certain amount if a second party (the principal ...

  7. Best construction loan lenders in 2024 - AOL

    www.aol.com/finance/best-construction-loan...

    A construction loan is a short-term loan designed to help with the purchase of a plot of land and the construction of a home or pay for major renovations to an existing home. Renovation loans, on ...

  8. Construction law - Wikipedia

    en.wikipedia.org/wiki/Construction_law

    Construction law builds upon general legal principles and methodologies and incorporates the regulatory framework (including security of payment, planning, environmental and building regulations); contract methodologies and selection (including traditional and alternative forms of contracting); subcontract issues; causes of action, and liability, arising in contract, negligence and on other ...

  9. Lump sum contract - Wikipedia

    en.wikipedia.org/wiki/Lump_sum_contract

    Obtaining construction loans are easier with this type of contract. [9] [8] The profit margins and percentages are greater for engineers and contractors. [8] [9] Payments and instalments are made on regular basis which provides the contractor with a reliable cash flow. [8] [9] Management of the contract is a lot easier for the owner. [8] [9]

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