Every construction project, regardless of size, starts with a vision and a goal. Whether it’s a $300 million skyscraper, a new professional sports facility or the remodeling of a residential powder room, someone has to have an idea of what they want to build or rebuild. Having that vision is the easy part. Finding the money to pay for it can be a lot tougher.

That job became even more difficult over the past several years with the collapse of many Wall Street ventures and commercial banking loans. As mortgages were canceled and bankruptcies increased, credit became increasingly difficult to obtain.

Over the last several years, the lack of working capital has postponed or canceled numerous construction projects, resulting in a rising unemployment rate across the country for the construction industry. Many developers and owners had to find alternate sources of revenue. Some turned to federal stimulus money, others sought public-private partnerships. Still others, however, turned to another source of funds which has helped

finance projects in western Pennsylvania and the tristate area for more than 20 years. That source is The Employee Real Estate Construction Trust Funds, also known as The ERECT Funds.

Formed in 1987 by business and pension fund managers of local union Ironworkers, Carpenters, Plumbers and Electricians, The ERECT Funds were created to provide loans and investments for local construction projects. The projects would in turn create jobs for contractors who employ union labor and the fund would offer a financial return to the pension funds that invest in it.

To make it happen, the founders turned to James E. Noland of Lane, Noland, Smith & Company, Inc., a highly-respected national mortgage banking company based in Pittsburgh. Mr. Noland and his partners formed PenTrust Real Estate Advisory Services, Inc. to find opportunities and provide the financial engineering needed for The ERECT Funds’ transactions to meet the standards of pension plan investors. Twenty-four years and 72 projects later, The ERECT Funds have provided

  Continued >