Specialist surveys and audits combining full accounts receivable review with proven construction and contractual debt expertise — bringing a fresh approach to construction lending risk.
Construction and contractual debt represents one of the most complex risk environments in asset-based lending. Retentions, variations, contra-charges, disputed applications and contract performance issues can all erode the quality of a debtor book far beyond what a standard accounts receivable survey can identify.
ABL Risk Management has built a capability specifically designed for this sector — combining the rigour of our established accounts receivable audit methodology with the technical expertise of highly experienced and proven contractual debt specialists. The result is a genuinely integrated service that gives lenders a complete and accurate picture of the construction receivables they are funding.
We work with banks, independent lenders, debt advisory firms and insolvency practitioners who require a credible, independent assessment of construction book risk — whether pre-lend, as part of ongoing facility management, or in distressed or exit situations.
Comprehensive assessment services tailored to construction and contractor lending scenarios.
Thorough assessment of a contractor or sub-contractor's debtor book before facility approval. We analyse the receivables position, review underlying contracts, assess the quality and collectability of applications for payment, identify retention exposure, and provide a clear view of the fundable book.
Periodic review of live construction facilities to monitor changes in book quality, contract performance, and risk profile. We identify deteriorating debtor quality, problem contracts, escalating retentions, and other warning signs before they become credit events.
Detailed analysis of the contracts underpinning the receivables. We review assignment restrictions, pay-when-paid clauses, set-off and contra-charge provisions, retention release mechanisms, and practical performance milestones — producing a clear assessment of fundability and risk per contract.
Rapid assessment of construction receivables in distressed or insolvency scenarios. We work with administrators, turnaround advisors and lenders to establish a realistic view of collectable debt, quantify retention and contra-charge exposure, and support informed decisions on realisation strategy.
Most accounts receivable surveys treat construction debtors like any other debtor. They shouldn't. Construction debt is governed by complex contractual frameworks, interim valuation cycles, dispute resolution processes, and sector-specific payment legislation that requires specialist technical knowledge to properly assess.
Our qualified and highly experienced contractual debt specialists work alongside our audit team to provide a level of technical analysis that simply is not available elsewhere in the independent survey market. From reviewing NEC and JCT contract mechanisms to assessing the validity and likely collectability of applications for payment, this expertise directly improves the quality of the risk assessment your credit committee receives.
This is not a bolt-on. It is a core part of how we approach every construction and contractual debt instruction — because we believe lenders deserve better than a standard template applied to a specialist sector.
A structured approach that integrates financial audit and technical QS review into a single, coherent assessment.
Receive your requirements, agree scope, timeline, and the specific contracts and debtors to be covered.
Request debtor listings, aged debtors, contracts, applications for payment, and financial information in advance of the site visit.
On-site assessment combining accounts receivable audit with technical QS review — management interviews, contract analysis, verification testing.
Detailed desk-based analysis of contract terms, retention schedules, disputed applications, and contra-charge exposure.
Comprehensive integrated report with findings, debtor-level analysis, risk assessment, and clear recommendations for your credit committee.
Every material factor that impacts the quality and security of construction lending.
Quality, collectability, and verification of applications for payment and certified sums
Assignment rights, pay-when-paid, set-off provisions, and practical enforceability
Retention balances, release mechanisms, defects liability periods, and risk of non-release
Unagreed variations, claims in dispute, and likely realisable value versus book value
Quantification of potential contra-charges, cross-contract set-off, and employer exposure
Progress against programme, completion risk, and contractual milestone achievement
Subcontractor and supplier exposure, insolvency risk, and payment obligation assessment
Contract administration processes, document management, and financial reporting quality
Bank account analysis, cash flow, WIP, and overall financial health in context of the facility
Whether you are considering a new construction facility, reviewing an existing book, or dealing with a distressed situation, we are ready to help. Get in touch to discuss your specific requirements.