• videocam Live Webinar with Live Q&A
  • calendar_month November 10, 2026 @ 1:00 PM ET/10:00 AM PT
  • signal_cellular_alt Intermediate
  • card_travel Real Estate - Finance
  • schedule 90 minutes

Completion Guaranties in Construction Lending: Key Provisions for Lenders and Guarantors

Defining Scope, Loan Funding, Obligation Conditions, Damages, and Termination Events

About the Course

Introduction

This CLE course will examine key provisions found in a construction completion guaranty and selected points that are subject to negotiation.

Description

When a borrower fails to complete a project on budget, the lender is left to oversee the remaining construction and to fund the cost of the overrun. This situation is a principal concern for construction lenders underwriting any project—big or small—causing many lenders to rely on completion guaranties to mitigate this risk. With a completion guaranty, the sponsor or other qualified third party agrees to complete the project and is responsible for the payment of cost overruns.

Construction lenders will typically include a carry component in the completion guaranty and/or a separate carry guaranty, which requires the guarantor to pay debt service and other carry costs until the project is completed or reaches stabilization or until the loan is repaid.

Listen as our authoritative panel examines various aspects of completion guaranties and provisions that are high-priority concerns for lenders and guarantors. The panel will also discuss provisions that may limit a guarantor's obligations under the guaranty and factors that may affect counsel's ability to negotiate those provisions.

Presented By

Blake Bars
Partner
Thompson Burton PLLC

Mr. Bars is a partner in Thompson Burton’s commercial real estate and corporate practice group. He represents developers, owners, investors, borrowers, and managers in the purchase, sale, development, financing, leasing and management of commercial and residential real estate properties. Mr. Bars's real estate practice involves all aspects of ownership and capital structures, including joint ventures relationships, preferred equity and mezzanine financing structures, and conventional and program financing. He has represented national banks, national real estate investors and developers, and regional and local developers for the new construction, purchase or refinancing of multifamily housing, hotels, offices, retail centers, industrial and residential properties. Mr. Bars also acts as a trusted business advisor on many transactions and is able to provide a wealth of experience and practical knowledge to his clients. He is recognized as a Mid-South Super Lawyers®Rising Star and in The Best Lawyers in America®: Ones to Watch, for Real Estate Law.

Thomas M. Hanahan
Partner
Taft Stettinius & Hollister LLP

Mr. Hanahan’s primarily focuses on commercial real estate development and project finance matters. He has significant experience representing developers and investors in the acquisition, development, and disposition of commercial real estate projects and representing lenders on construction and permanent loans and loan workouts. Additionally, Mr. Hanahan is experienced with all major real estate asset classes, and his practice has been national in scope, involving projects in over half of the states in the U.S. His real estate development practice includes involvement in all aspects of ownership and capital structures, including joint venture relationships, private placement equity raises, common and preferred institutional equity raises, mezzanine financing structures, and conventional and program financing. In Mr. Hanahan's lending practice, he represents lenders on construction and permanent financings, including single bank deals, syndications, participations, and loan workouts and foreclosures. In addition to his commercial real estate practice, Mr. Hanahan has experience with a wide range of other matters, including general business transactions, corporate and commercial law, litigation, bankruptcy, creditors’ rights, and land use.

Credit Information
  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.


  • Live Online


    On Demand

Date + Time

  • event

    Tuesday, November 10, 2026

  • schedule

    1:00 PM ET/10:00 AM PT

I. Purpose of completion guaranties

A. Defining guarantor's construction obligations

B. Damages for failure to complete

II. Factors impacting the scope of guaranty

III. Loan funding and other conditions to completion obligation

IV. Limitations on liability

A. Liquidated damages

B. Limitation of costs: hard costs vs. costs to carry the loan

C. Termination upon foreclosure or bankruptcy sale

The panel will review these and other key issues:

  • The extent of the guarantor's exposure to fund construction costs
  • The guarantor's ability to access unfunded construction loan proceeds and reserves held by the lender
  • The construction lender's remedies, including liquidated damages provisions