The problem with financing in-house is that no contractor is going to be willing to commence construction unless they know that funds are available for the entire project. Yes, projects are paid for on a month-by-month basis based upon percentage of completion and a mutually agreed upon schedule of values, but nobody is going to want to spend millions, out of their own pocket, without having assurance that funds are available.
I am a concrete contractor working in the commercial, industrial and institutional arena and even for my one trade, there are times when we will be out a couple million before we see a dollar in payments. Now multiply that by twenty or so subcontractors...........all with varying levels of financial exposure and it gets dicey quick.
But I agree. There are certainly options to dilution. One is waiting until existing operations have generated enough funds for construction costs to be covered and another is financing the construction costs.
Personally I suspect the company will do a little of all three to cover the costs.
