If you’re a developer in Yorkshire or the wider North looking to secure development finance, here’s something worth knowing before you pick up the phone to a lender: the person holding your project together isn’t just your build partner, they’re a significant part of your credit story.
At Invest&Fund, we’ve reviewed thousands of development propositions. One of the most consistent gaps we see between deals that progress smoothly and those that stall at credit stage has nothing to do with the site, the planning consent, or even the numbers. It comes down to the contractor.
This matters particularly in the North, where regional contracting markets operate differently from London and the Southeast. There’s a strong base of experienced, well-capitalised SME contractors across Yorkshire, Greater Manchester, and the Humber, but also a significant number of newer entrants, stretched operators, and management-only outfits whose actual grip on programme and cost is thinner than their headline contract position suggests. Knowing the difference matters enormously.
So, what do we actually look at?
Financial substance. A contractor’s name on a JCT contract means very little if their Companies House filing history shows declining net assets, director churn, or a business that’s barely two years old. We compare what’s in front of us against what a financially stable, experienced contractor looks like and we make a judgement call on the gap.
Relevant experience. A contractor with a strong track record in commercial fitouts is not automatically the right choice for a 14-unit residential scheme with basement parking. We look at whether their CV actually matches your scheme’s specification: traditional build versus timber frame, below-ground complexity, phased handovers, listed building constraints.
Capacity. An overstretched contractor running four live sites simultaneously is a material risk. Programme delays in development finance are expensive, for you and for us. We want to know that your contractor’s attention is genuinely available, not split across half of West Yorkshire.
Contractual protections. There’s a world of difference between a clean fixed-price JCT agreement and one riddled with fluctuation clauses. Collateral warranties and step-in rights need to be properly executed, not sitting as draft heads of terms. Insurance needs to be current, adequate, and correctly scoped.
The relationship. A developer and contractor who’ve completed three schemes together and have a shared understanding of build programme represent a fundamentally different risk profile to a first-time pairing. Familiarity reduces disputes, variations, and the kind of mid-build exits that can turn a viable scheme into a distressed asset.
None of this is designed to make life difficult. The best brokers we work with cover much of this ground already, and the developers who come to us with well-prepared submissions, contractor background included, move through credit far more smoothly. The North has genuine strength in its regional contracting base. The developers who know how to present that strength compellingly are the ones who secure finance faster, on better terms, and with fewer surprises along the way.