A determination that ignores an open risk is wrong; one that fails the project over a curable item is useless. Conditions are the precision instrument.
Real projects arrive with loose ends: an expired environmental report, an unhired manager, an unexecuted contract, an entitlement still in process. The conditional determination — feasible, subject to enumerated conditions precedent — lets the analysis be both honest about the gaps and useful to the lender, who converts the conditions directly into closing requirements. The alternative postures — ignoring the gaps or failing the project over them — each transfer risk to someone who did not agree to hold it.
A well-drafted condition has three properties: it is specific (which document, which approval, which hire), it is verifiable (the closing checklist can confirm it), and it is material (it traces to a risk the analysis actually identified, not boilerplate). Wert-Berater determinations carry conditions in exactly this form — recent practice includes a marina facility conditioned on a current Phase I environmental assessment and a Texas RV resort delivered FAVORABLE WITH CONDITIONS carrying twenty-three enumerated items, each mapped to the section that surfaced it.
The number of conditions is not a quality score in either direction. A clean FAVORABLE on a project with an expired ESA is a worse study than a conditional one; a determination buried under boilerplate conditions that trace to nothing is hedging, not analysis. The test is traceability: every condition should point back to a finding, and every material unresolved finding should produce a condition.
For lenders, the practical instruction is simple: read the conditions first. They are the study’s risk register, already converted into actionable form.
President, Wert-Berater, Inc. — independent feasibility study consultants since 1998. More than 4,000 feasibility studies completed across all 50 states and internationally, evaluating $40.2 billion in project value for SBA, USDA, EB-5, conventional, and institutional financing decisions. Fiduciary duty runs to the lender and agency in every engagement.
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