For developers & project sponsors
When the project stalls, you need room to act.
Four situations we repeatedly see with developers and project sponsors – and how we approach them. Calm, confidential and on your side.
One of several situations – investing from abroad or facing a different problem? For investors · All services
- 01Construction halt & delays
- 02Financing is stuck
- 03Dispute with contractor / general contractor
- 04Obligations to investors
Our role
WTG Solutions advises, brings order to the situation, negotiates and coordinates specialists. We are neither a lender nor a law firm. Any stake of our own or any acquisition only ever takes place with open written disclosure and your explicit consent.
We always represent the interests of our client – never those of the counterparty. Before we begin, we clarify your role and whether there is a conflict of interest. If you are an owner or investor, you will find your topics on the services page.
Construction halt & delays
The site is standing still or falling behind schedule. Costs keep running, buyers, bank and investors grow uneasy – and nobody has a reliable overall picture.
What WTG does
We create a reliable picture of status, costs and parties, reorganise the construction sequence and hold the talks that get the project moving again – with contractors, lenders and investors.
Typical path
- 1
Review status and schedule
Take a sober inventory of progress, costs and open points.
- 2
Agree the reorganisation
Realign sequence, responsibilities and financing with all parties.
- 3
Restart construction
Steer implementation and bring the project to completion.
Typical causes
Bank blocks the tranche
The next instalment is not paid out – e.g. because progress is not confirmed, conditions are open or equity is not evidenced.
Progress valuation
The bank's surveyor sees the status differently from you; drawdowns are delayed.
Variations & overruns
Extra costs exceed the budget; the financing does not cover them.
Subcontractor drops out
A trade stalls or fails, subsequent trades stand idle.
Permit / structural design
A design change, condition or structural question stops the site.
What to clarify in the first days
- Who stopped – and why (bank, trade, authority, yourself)?
- Which payments, deadlines and commitments are running?
- What exactly do bank and surveyor say – in writing?
- Which trades are affected, and what does each week of standstill cost?
- Whom must you inform now (buyers, investors, insurer)?
What WTG does in practice
- Sort the situation: status, costs, deadlines and parties in one reliable picture
- Steer negotiations – with bank, surveyor, general contractor and subcontractors
- Realign schedule and financing plan together
- Organise completion and bring in the right specialists
What we do not promise
- If structural design or permits are the problem, specialist designers and authorities are needed – we coordinate but do not replace them.
- We promise neither a restart date nor the bank's consent.
Typical timeframe
First clarity usually within days to a few weeks; restart depends on bank, trades and permits.
Guidance, not legal advice
Who is involved
Site management / valuer · contractors · lenders · partner law firm
We do not contact investors, banks, tradespeople or authorities without your consent.
Financing is stuck
Follow-on financing is unresolved, a drawdown is stuck or bridge financing is missing to hold the project – and time is running.
What WTG does
We prepare project and figures so that lenders and capital providers can follow them, hold the negotiations and develop alternatives – prolongation, refinancing, bridge financing, new partners.
Typical path
- 1
Clarify need and situation
Capture financing status, deadlines and collateral.
- 2
Prepare options
Present the project clearly and hold talks with funders.
- 3
Structure the solution
Agree prolongation, refinancing or bridge financing.
Instruments in market terms
Follow-on financing
New or extended financing when the existing one expires or falls short.
Bridge financing
Short-term cover until an event such as a sale, drawdown or refinancing.
Mezzanine / subordinated capital
Capital ranking behind the bank that narrows the equity gap.
Equity gap
The amount missing between total cost, bank financing and available equity.
Mortgage lending value
The value the bank applies for the financing – often more cautious than market value.
Pre-sales ratio
Share of units already sold or firmly reserved – a frequent drawdown and credit criterion.
Evidence of equity
Proof that the owner's share has been paid in and where it comes from.
Plan B if the bank declines
- Add mezzanine or subordinated capital from private funders
- Investor search for a project stake or joint venture
- Sell individual units to create liquidity
- Partial sale of the project or the plot
- Reorder construction phases so the bank sees a lower risk
Where it typically gets stuck
- The mortgage lending value is below expectation.
- The pre-sales ratio is lower than the bank requires.
- Overruns have opened an equity gap.
- Maturity approaches without a follow-on solution.
- Drawdown conditions are not met or not evidenced.
What banks want to see
- A reliable cost and schedule plan
- Evidence of equity and subordinated funds
- Pre-sales or lettings at a plausible level
- A clear picture of completion risk and responsible parties
What WTG does in practice
- Prepare project and figures for funders
- Find suitable contacts – banks, financing partners, investors
- Support negotiations and develop alternatives
- Where needed: investor search and structuring
What we do not promise
- WTG is not a lender and does not grant loans – we prepare the case, make introductions and negotiate on your behalf.
- We promise neither a financing commitment nor specific terms.
Typical timeframe
Preparation usually takes a few weeks; funders' decisions can take several more.
Guidance, not legal advice
Who is involved
Lenders · financing partners · tax adviser · partner law firm
We do not contact investors, banks, tradespeople or authorities without your consent.
Dispute with contractor / general contractor
A dispute over money with the contractor or general contractor: interim payments, retention for defects, final invoice, contractor's security under § 650f BGB (Bauhandwerkersicherung) – and concern that the general contractor may fail.
What WTG does
We sort claims and counterclaims, negotiate on equal terms and develop a solution that keeps construction going. If the general contractor may fail, we prepare alternatives.
Typical path
- 1
Sort the claims
Trace and assess payments, defects and variations.
- 2
Negotiate with the contractor
Bring positions closer and work out a viable agreement.
- 3
Agree or secure an alternative
Continue construction – or prepare a replacement in time.
Typical points of dispute
Interim payments
Dispute over whether and in what amount interim payments are due.
Defects & retention
Which defects justify which retention?
Set-off
Offsetting own counterclaims against the general contractor's remuneration.
Final invoice
Verifiability, quantities, variations and acceptance.
Security for construction work (§ 650f BGB)
Under certain conditions the contractor may demand security – a liquidity and deadline issue for developers.
General contractor insolvency risk
If the general contractor runs into trouble, standstill and defect/warranty questions loom.
Contractual penalty
Dispute over delay and an agreed penalty – contract wording and evidence decide.
First steps – as orientation
- Document payments, retentions and letters completely
- Note deadlines from contract and letters – and do not let them lapse
- Record defects with photographs and inspection reports
- Keep communication in writing and have oral commitments confirmed in writing
- Prepare alternatives for the construction sequence in case the general contractor fails
Alternatives to litigation
- Negotiation between the parties, if needed with a neutral expert view
- Conciliation or mediation
- Payment plan with clear stages
- Partial acceptance so that completed areas can be paid for and used
When a specialist lawyer is needed
- Deadlines, termination, security demands or threatened litigation call for a specialist lawyer for construction and architectural law.
- WTG works with a partner law firm: we coordinate, bundle the facts and lead the negotiation – the firm handles the legal questions and filings.
What WTG does in practice
- Sort claims and counterclaims
- Lead the negotiation on equal terms
- Develop a solution that keeps construction going
- Prepare alternatives in case the general contractor fails
What we do not promise
- We do not assess legal questions and do not guarantee an outcome.
- If the general contractor becomes insolvent, statutory rules apply that specialist advisers clarify.
Typical timeframe
Sorting the situation usually takes days; negotiations can take weeks, legal clarification longer.
Guidance, not legal advice
Who is involved
Valuer · site management · partner law firm · if needed insolvency administrator
We do not contact investors, banks, tradespeople or authorities without your consent.
Obligations to investors
You have obligations to investors or capital providers, but the project is not running as planned. Payments or repayments are at risk and the relationship grows tense.
What WTG does
We are on your side: we develop a reliable overall picture, hold the talks with investors, negotiate deferral or prolongation and structure the obligations so the project keeps a viable outlook.
Typical path
- 1
Capture the obligations
Set out due dates, commitments and room for manoeuvre in sober terms.
- 2
Hold talks with investors
Engage openly, in a structured way and with a clear proposal.
- 3
Agree deferral / prolongation
Record a structure that gives the project time and a viable outlook.
Typical building blocks
Subordinated loan / subordination declaration
A loan ranks behind other creditors. What this means for rights and duties is for the lawyer to clarify.
Prolongation / standstill agreement
Extension of term or temporary waiver of measures – against a clear concept.
Communication with investors
Open, structured and with a concrete proposal rather than silence.
Payout / repayment plan
A realistic plan matching project progress and sale proceeds.
What not to do
- Favour individual creditors or investors – this can have legal consequences; clarify with your lawyer first.
- Withhold or gloss over information.
- Make commitments that are not agreed or cannot be met.
- Wait until due dates have passed.
Putting insolvency in context
- Insolvency topics come into play only if needed and only with specialist advisers (insolvency administrator, specialist lawyer). Before that, we examine which alternatives exist.
What WTG does in practice
- Develop a reliable overall picture of the obligations
- Lead talks with investors on your side
- Negotiate deferral or prolongation
- Arrange the structure so that the project keeps a viable outlook
What we do not promise
- We do not promise that investors agree or waive claims.
- We replace neither lawyer nor insolvency administrator.
Typical timeframe
A first overall picture usually within days; talks with investors typically take weeks.
Guidance, not legal advice
Who is involved
Investors / capital providers · partner law firm · tax adviser
We do not contact investors, banks, tradespeople or authorities without your consent.
Who pays for what
- 1
First conversation
Free and without obligation.
- 2
Written proposal
Fixed scope and fee – before work begins.
- 3
Third-party costs
Surveyors or law firms bill you directly – you keep control.
Schematic description of typical situations. WTG Solutions does not provide legal advice; legal matters are handled by independent, specialised partner law firms. Outcomes cannot be promised.
Let's talk – in confidence.
Tell us about your situation. The first conversation is free of charge and without obligation.