Commercial Lender Draw Inspections:
A System Of Checks And Balances
Commercial construction projects are complex processes that require the services of well-trained professionals. Construction loans require a thorough understanding of construction completion risks. Draw inspections play an important role in ensuring that projects are progressing in tandem with the disbursement of funds. GreenWorks award-winning draw inspections verify, for lenders, that they are paying for work that has actually been completed.
We understand that the main goal of all construction projects is to have a smooth flow from beginning to end. But the reality is that things happen, obstacles arise. There will always be the need for some sort of control over the duration of a project. The intent of a draw inspection is to reduce risks for lenders. By simply following along with the construction process and confirming that disbursements are going into the collateral on the loan, a draw inspection can catch potential problems.
For example, if construction falls behind due to weather, you might risk disbursing money on work that has yet to be done. A lender needs to know about these circumstances in order to keep payments in sync with work completed. Our draw inspectors are essentially your eyes and ears on the construction site.
Lender Draw Inspectors Will:
- Determine if the builder has completed work that has been paid for.
- Visit the site to evaluate progress and compare it to what has been reported.
- Track the progress and stage of construction.
- Account for all cost statements, then analyze and track funds.
- Review change orders and ensure they’re in agreement with the project timeline.
- Report on the total materials used and services rendered.
Draw inspections are a crucial element of risk management. As a good practice, lenders will typically schedule monthly draw inspections. However, draw inspections may be requested as often as the lender would like. These inspections have been engineered to reduce risks in lending by collecting accurate data in real time, all in order to help lenders prevent before they lament. GreenWorks can offer lenders peace of mind knowing that their investments are under the watchful eye of superior professionals.
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