Construction · Defined
Funding shortfall
A gap between the funds available for a defined project obligation and the amount expected to be needed to satisfy it. The comparison requires a consistent scope and date.
Why it matters
Distinguish a projected shortfall from an overdue invoice or a timing mismatch. Loan proceeds, required equity, committed but undisbursed funds, and restricted reserves are not always interchangeable. A consultant can identify the gap; the capital providers decide how it is addressed.
In practice
A project example
Additional work raises the remaining completion forecast above the unspent project budget. A proposed future equity contribution should be identified separately from funds already documented as available.
General educational guidance from KOW Building Consultants. Examples are illustrative, not project records. The applicable contract, standard, program, and jurisdiction control the requirements for a specific assignment.