The Lake

REMEDY ACCOUNTING ISSUES TO GET CONSTRUCTION BACK ON TRACK

Vision: Provide forensic accounting expertise to resolve financial issues hindering construction progress, while delivering construction management support to meet the project’s development requirements.

ELM was initially engaged by Liberty Ridge to provide construction management services for the first phase of its residential townhouse development, consisting of four buildings and 24 units. In July 2023, construction progress was delayed due to accounting issues and late payments to trades.

As ELM’s role expanded to include development management, the team conducted a forensic review to assess the books, reconcile accounts receivable and payable, and verify holdbacks. Through this work, ELM was able to reduce trade payment timelines to a net 40–45 days. By October 2023, ELM had resolved the majority of the accounting issues and helped rebuild trust with the trades, allowing construction to proceed on schedule. In addition, city-mandated off-site works were required on a portion of the site as part of the development agreement and had to be completed prior to first-phase occupancy. ELM worked closely with the City and the water provider to coordinate construction of the boat launch, public washrooms, and remedial roadwork.

In May 2024, ELM completed construction of all four buildings on behalf of Liberty Ridge, with occupancy permits secured by July 2024 and closings commencing in September 2024. By leveraging ELM’s development and construction management expertise, Liberty Ridge was able to honour the original Agreement of Purchase and Sale closing dates. This ensured purchasers did not incur additional costs or gain the ability to walk away due to missed closing deadlines. As a result, Liberty Ridge preserved approximately $6 million in unit value and site-related value.

ELM also supported the project’s sales and marketing efforts. Through coordinated campaign management, strategic positioning, and ongoing sales support, ELM helped maintain strong sales activity and overall project momentum. In addition, ELM remained involved through the after-sales warranty phase, assisting with homeowner inquiries, deficiency tracking, and the coordination of timely resolutions to ensure a smooth post-closing experience and maintain customer satisfaction.