In the making of payments, and in the conduct of the entire building transaction, it requires continuous, careful attention to, and expert knowledge of, the situation by the building loan man. Building payments are arranged in schedules and agreed on in advance in writing, but they are rarely lived up to, as builders often want money in different ways, and in more payments than agreed. A reasonable building loan man will let responsible and well-meaning builders have these accommodations, as no contract can be drawn which will cover all the necessities which arise in operations covering a period differing from six months to two years. It must not be supposed that loans of this kind can be obtained without more than the usual charge, both of interest and fees, than that made for permanent loans. The cost is governed by money conditions, and varies materially at times. Typical schedules of payments for different sizes of buildings are given at the end of this chapter.

Among the life insurance companies and other financial institutions which make this kind of loan, it is customary to charge a fee in addition to interest charges, sufficient to defray the cost of title examination, employment of counsel, architects and engineers. They also are most particular as to the responsibility of the builders they loan to and in a number of cases insist on some substantial bond as guarantee that the building will be completed.

Throughout the entire handling of building loan operations, there is always risk of the builder's failing to complete his building. The number of failures among builders is proof of the fact that mistakes are constantly being made. Owing to the agreements among the work-ingmen's unions and among the material associations, it is very difficult to finish a building operation on which a builder fails and owes money to the contractors, without making a settlement with these unions, because they control the employment of labor and the output of material. Thus, although the failure of the builder may ruin him, it also falls heavily upon the man who has his money in the operation.