Guide to Draw Inspections and other Inspection Types for Construction Lenders

This article aims to help you better understand Draw inspections by explaining the differences among our various property inspection offerings.

Please note that you should determine which type of inspections best fit your needs.

Inspections serve as the backbone of transparency, offering visibility and clarity regarding your project’s status. It’s more than just a routine check; it’s a proactive approach to identifying potential issues before they escalate into major roadblocks. By incorporating inspections at every draw, you not only adhere to industry norms but also establish a robust system that safeguards your investment.

Draw Inspection

The purpose of a draw inspection is to verify the progress of construction or renovation work and ensure that funds disbursed by the lender are being used appropriately and in accordance with the loan agreement. The inspection typically involves:

Visiting the construction site to assess the completed work compared to the project timeline and budget outlined in the loan agreement.
Documenting the progress of construction or renovation, including completed milestones, materials used, and any deviations from the original plan.
Evaluating the quality of workmanship and materials to ensure they meet industry standards and comply with building codes.
Reporting findings to the lender, including any discrepancies or concerns regarding the progress or quality of the work.
Recommending disbursement of funds to the borrower based on the completed work and verified expenses.

Draw inspections also provide transparency and accountability in the construction process, benefiting both the lender and the borrower.

Scope of work inspections

A Scope of Work inspection typically involves a thorough assessment of a property or project to define the specific tasks, requirements, and objectives necessary to complete a given job or contract.

During a Scope of Work inspection:

A qualified inspector or project manager evaluates the property or project in detail to understand its current condition, specifications, and any relevant constraints.
The inspector identifies and documents the scope of work required to achieve the desired outcomes, including specific tasks, materials, resources, timelines, and quality standards.
The scope of work may include various aspects such as construction, renovation, maintenance, repairs, or other services, depending on the nature of the project.
The inspector may collaborate with stakeholders, such as property owners, contractors, or project managers, to define and finalize the scope of work based on their needs and expectations.
Once the scope of work is established, it serves as a comprehensive guide and reference for all parties involved in the project to ensure that everyone understands their roles, responsibilities, and the project's objectives.

Overall, a Scope of Work inspection plays a crucial role in clarifying project requirements, setting expectations, and facilitating effective communication and collaboration among stakeholders to achieve successful project outcomes.

Progress check inspection

Progress check inspections are typically conducted during the construction or renovation of a property to assess the status and quality of the work at various stages of completion. They ensure that work is progressing according to plan and identify any potential issues that need to be addressed.

During a progress check inspection:

A qualified inspector visits the construction site to evaluate the progress of the project based on predetermined milestones or checkpoints.
The inspector examines the completed work, materials used, and adherence to plans and specifications to ensure that the project is proceeding according to schedule and quality standards.
Any deficiencies, deviations from the plans, or issues that may affect the project's progress are noted and reported to the relevant parties, such as the contractor, project manager, or property owner.
Recommendations may be provided for addressing any identified issues or making adjustments to ensure the project stays on track.
The progress check inspection helps stakeholders monitor the project's progress, identify potential problems early on, and take corrective action as needed to prevent delays or cost overruns.

Overall, a progress check inspection provides valuable insight into the construction or renovation process, allowing stakeholders to ensure that the project is advancing smoothly and meeting the desired standards of quality and completion.

Punch list inspection

Punch list inspections are a final inspection, typically conducted before the completion of a construction project or renovation. Discovering remaining issue that are compiled into a "punch list" that must be completed before the project can be considered officially finished.

During a punch list inspection:

The homeowner or their representative walks through the property, carefully examining each area and aspect of the construction or renovation work.
Any incomplete tasks, deficiencies, or defects are noted and compiled into a list.
This list typically includes items such as missing trim pieces, paint touch-ups, minor repairs, adjustments to fixtures, or other finishing details that need attention before final completion.
Once the punch list is created, the builder or contractor is notified, and they are responsible for addressing and completing the items on the list to the homeowner's satisfaction.
After the items on the punch list are resolved, a final inspection may be conducted to ensure that all issues have been adequately addressed and the project meets the homeowner's expectations.

The punch list inspection serves as a final quality control measure to ensure that the construction or renovation work is finished to the agreed-upon standards and specifications. It allows the homeowner to identify any remaining issues or concerns and ensures that the project is completed to their satisfaction before final acceptance and occupancy.

FAQs

How soon can I book my draw inspection?

Our Customer Success team typically books ordered inspections within 24-48 hours of your request. Occasionally same day bookings are available, but we would recommend planning ahead at least one two days before you need your inspection results. You can reach the Customer Success team via email at hello@inspectify.com.

When will my funds be released?

This question should be directed to your lender. They will typically determine this based upon the inspection results.

I’m the borrower and I’ve only completed work on the exterior of my home, do you need access to the interior?

Thank you for asking, we will need to complete the entire scope requested by our client, your lender. If the scope is requesting the interior of the home, then yes we will need access. Regardless if there has been no work completed, our client needs documentation on various parts of the home. If you require a more limited scope, then you will need to contact your construction lender.

Can you send me the report?

We are only able to provide the report to our direct client. Please reach out to them for more information.