Which of the following is NOT a problem situation regarding a construction loan that might be concealed using change orders?

• A. Design changes were requested
• B. Collusive bidding is occurring
• C. Shortcuts are shoring up other problems
• D. The original project is not feasible

Answer: (A)

In construction lending, change orders should reflect legitimate scope changes, time shifts, or cost adjustments rather than hidden problems. So a request for design changes isn’t automatically a red flag; it can be a normal part of evolving project needs or owner directives that are properly documented and approved. The other scenarios, however, point to concealment risks: collusive bidding suggests fraud and inflated costs, shortcuts indicate cutting corners to cover up deeper issues, and an original project not being feasible signals a fundamental misrepresentation that might be masked by change orders.