Funding, Security Documentation & Collateral Warranties
Funding, Security Documentation & Collateral Warranties
Securing reliable funding and protecting investment interests are vital to the success of any construction project. At The Jonathan Lea Network, we advise developers, lenders, purchasers and investors on the full range of financial, security and warranty arrangements underpinning construction and development schemes.
Our solicitors combine technical precision with commercial insight to help structure agreements that minimise risk, satisfy lender requirements, and ensure project continuity from inception to completion.
Why Funding and Security Matter in Construction Projects
Construction projects typically involve significant capital investment and complex contractual chains. Robust funding structures and supporting documentation are essential to safeguard stakeholders’ interests, manage exposure, and maintain compliance with lender or investor obligations.
We provide legal guidance for project financing, from facility agreements to security documentation and collateral warranties, ensuring each document works together to protect your position.
Development Finance and Facility Agreements
We act for both borrowers and lenders in drafting, reviewing and negotiating construction and real estate development finance documentation, including:
- Facility agreements and development loan documentation
- Step-in rights and funder protections in the event of default or contractor insolvency
- Security reviews to ensure funding terms are properly aligned with underlying construction contracts
Our role is to balance commercial objectives with lender requirements, enabling projects to progress smoothly without unnecessary delay.
Security Documentation
We assist clients with certain security documentations needed to safeguard investments and manage project risk. This includes:
- Debentures and legal or equitable charges over development assets, as appropriate
- Guarantees and indemnities between related entities
We also provide due diligence to confirm that all security instruments are properly executed, enforceable, and compliant with lender or investor requirements.
Collateral Warranties
Collateral warranties play a vital role in connecting the various parties involved in a construction project. They provide funders, purchasers, and tenants with direct contractual rights against contractors, consultants, and key subcontractors in respect of design, workmanship, and professional negligence.
Our services include:
- Preparing and negotiating collateral warranties between contractors, consultants, funders, purchasers and tenants
- Reviewing step-in provisions under collateral warranties and ensuring ongoing compliance with professional indemnity and other insurance obligations
- Advising on warranty enforceability, limitation periods, and assignment rights
- Coordinating warranty execution to meet completion or drawdown deadlines
By ensuring warranty chains are properly drafted and executed, we help secure all necessary protections before project completion or funding release.
How We Help
Our construction solicitors provide tailored legal support across the funding and security lifecycle:
- Structuring finance: Advising on funding models and facility structures that meet lender and project requirements
- Drafting and negotiation: Preparing finance, security and warranty documentation that reflects your risk appetite and commercial goals
- Due diligence: Identifying gaps in project documentation that could jeopardise funding conditions, delay drawdown, or affect the enforceability of security interests under English law
- Closing and completion: Managing documentation sign-off and ensuring compliance with all lender and project requirements
Our approach is pragmatic and detail-driven, we focus on ensuring that legal protections enhance, rather than hinder, project delivery.
Who We Act For
We regularly act for a broad range of stakeholders in the construction and property sectors, including:
- Developers and project sponsors seeking to secure finance for new builds or redevelopments
- Private investors and funders providing capital through debt or equity arrangements
- Contractors, consultants and subcontractors providing warranties to third-party beneficiaries
Whether you’re securing funding, issuing warranties, or enforcing security, our team ensures that your position is protected and your documentation is sound.
Why Choose The Jonathan Lea Network
- Specialist expertise: We understand the interaction between construction law, property law and finance documentation.
- Commercial focus: Our advice is practical, proportionate and aligned with real-world project dynamics.
- Responsive service: We work to tight timeframes to meet funding deadlines and completion requirements.
- Transparent pricing: We offer clear cost estimates and flexible fee structures to suit your project’s needs.
Contact Our Construction Funding Solicitors
If you require advice on construction project finance, security documentation or collateral warranties, our team can help you navigate the process efficiently and confidently.
📞 Call us on 01444 708 640
📧 Email: wewillhelp@jonathanlea.net
Frequently Asked Questions (FAQs)
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What is a collateral warranty and why is it important?
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A collateral warranty gives funders, purchasers, or tenants a direct contractual link to contractors and consultants. It allows them to claim for losses arising from defects, design errors, or professional negligence.
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Who should provide collateral warranties on a project?
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Typically, the main contractor, design consultants and key subcontractors each provide warranties to funders, purchasers and tenants. The scope depends on each party’s involvement and the project’s funding arrangements.
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What security documents are commonly required by funders?
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Common security instruments include performance bonds, parent company guarantees, and legal or equitable charges over assets. These documents protect lenders if a borrower or contractor defaults.
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Can you help with step-in rights for funders?
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Yes. We advise on and negotiate step-in rights that allow funders to take control of a project if the borrower or developer defaults, ensuring continuity and protection of investment.
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Do you act for both lenders and borrowers?
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Yes, but never on the same transaction. Our experience advising both sides gives us a balanced perspective and helps us anticipate the concerns of counterparties.
Our Construction Law Team
What Our Clients Say
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Whether you need help securing funding or drawing up an agreement, our team would be very happy to help.
Contact us today to discuss your matter and find out how we can support your business.
Please be aware that the free 20 minute call is at our discretion. If you are looking for advice and guidance on an initial call, we may instead offer a one-hour fixed fee appointment instead.
Our fixed fee appointments are charged from £250 plus VAT to £350 plus VAT* depending on the complexity of the issues and seniority of the solicitor taking the call.