CONSTRUCTION LOAN
DRAW INSPECTIONS
The construction loan draw inspection process typically involves the following steps
Loan Agreement Review
The inspector begins by reviewing the loan agreement to understand the terms and conditions, including the disbursement schedule and inspection requirements.
Site Visit
The inspector visits the construction site to assess the progress of the project. They examine completed work, compare it to the plans and specifications, and note any deviations or issues.
Documentation Review
The inspector reviews various documents, such as construction invoices, lien waivers, change orders, and contractor certifications, to verify the accuracy of the information and ensure compliance with the loan agreement.
Cost Evaluation
The inspector evaluates the costs associated with completed work to confirm that they are reasonable and within the approved budget. They may also assess the value of materials stored on-site.
Report Preparation
Based on the site visit and documentation review, the inspector prepares a detailed report that outlines their findings, including any discrepancies or concerns. This report is shared with the lender to determine if funds should be disbursed.
Fund Disbursement
After the report is submitted, the lender reviews the findings and decides whether to release funds for the completed work. If approved, the funds are typically disbursed to the contractor to cover the expenses.
With 20+ years of experience in the construction industry E&E Builders is well equipped to tackle your draw inspection needs. Contact us today for more information or to get started.
