No matter how long you’ve been in the business, it is always worth taking the time to make sure that you are not forgetting the basics. We work to find the best way for our clients to take their long-earned reputations into the future. We have innovative fund control solutions that can truly change the way you do business.

Today we are going to talk about something that many loan facilitators learn once and never revisit: Draw inspections. Read on to get a refresher and then reach out to learn more about our innovative software by calling 800-625-5972 or sending an email to info@eclsoftware.com.

Let’s begin at the beginning

Let’s say you’ve made your construction loan and the project has begun. If everything goes as planned, the builder is going to send draw requests for materials, labor, etc. according to the draw schedule you have set up. Ideally, they will make progress as expected and the project will be done when it is supposed to for the amount budgeted.

This is an ideal situation but we all know that the ideal rarely happens. Instead, it is important to consider the best practice to mitigate risks, and that often involves order draw inspections to ensure that progress is moving forward as expected.

Draw inspections help lower risk

The main reason that you want draw inspections is because you want to ensure that the funds are going where they are supposed to go and to find any problems with the loans as quickly and early as you can. For example, let us imagine that a builder is behind schedule. The risk is that you could disburse money for work that hasn’t been done – and perhaps will never be done.

The sooner you know the situation, the sooner you can take corrective action. You may need to work with the builder to find a solution. Draw inspections also help prevent truly horrible, worst-case scenarios like a builder working on the wrong lot or getting funds for a project they are not even constructing.

What to expect with draw inspectors

Your draw inspector should go to the worksite to look at progress and compare it to what’s been reported. Specifically, the goal is to validate that work items and materials are in place and to determine if funds should be released or if other action should be taken. The ideal draw inspector has experience in this and knows exactly what to look for.

We can help keep you up to date on your fund disbursement

We are passionate about creating solutions within the construction industry that truly make our client’s lives easier. That is what our fund management software does. If you are ready to find out more about how it can work for you then call us now at 800-625-5972.