Construction and Bank Draw Inspections
Our licensed inspectors at Real Inspection Experts provide financial institutions and property owners with draw inspections. Also known as a construction draw request inspection or simply bank draw inspection. We provide these for our banks and other financial institutional clients who offer financing for construction or renovation projects.
The purpose of a draw inspection is to verify the progress of the construction project. It ensures that the funds disbursed by the lender are used appropriately and in line with the agreed-upon construction planning. These inspections usually occur at stages or milestones of the project.
During a draw inspection, our inspector visits the construction site and assesses the completed work. This will help confirm that it aligns with the plans and specifications. The inspectors also review the associated documentation, including invoices, receipts, and contractor payment requests. The inspector takes photographs of the progress of the project providing a detailed report to the bank or lending institution.
Based on the photographs and the inspector’s findings, the lender can determine the amount of progress made and whether to release the funds requested by the borrower to continue the construction project. This process helps protect the bank’s interests by ensuring that the funds are being used for legitimate construction expenses and that the project is progressing as intended. It offers a level of risk mitigation for the lending institution and helps minimize the chances of incomplete or substandard construction projects.
Specific requirements and procedures for bank draw inspections do vary among our different financial institution customers and the size and breadth their construction projects.