Construction draw package checklist
What to have ready before you send a draw request, so the money arrives faster.
Short answer: A construction draw package usually includes a draw request summary by budget line, cost to date compared with the lender's budget, supporting invoices and receipts, lien waivers from subs and suppliers paid with the prior draw, percent complete with site photos, and the remaining budget and any retainage. Always follow your lender's own form and rules first.
The checklist
- Draw request summary by line item, on the lender's form if they have one
- Cost to date vs the lender's budget, by line
- Invoices and receipts, indexed to each line
- Conditional lien waivers for this draw, unconditional for the last one, as your lender and state require
- Percent complete by line, with site photos
- Change orders approved since the last draw
- Retainage and remaining budget
- Updated insurance certificates if the lender asks
Why draws get delayed
The usual causes are missing lien waivers, invoices that do not match the budget lines, and percent complete that the inspector does not agree with. Keeping costs coded to the same lines as the lender budget all month avoids the scramble.
How we help
On every BrikBooks plan, we prepare the draw package from your books. You submit it. See a sample draw package.
Common questions
What is the difference between conditional and unconditional lien waivers?
A conditional waiver takes effect once payment is received. An unconditional waiver is effective when signed. Rules vary by state, so check with your attorney or title company.
Who decides percent complete?
Your lender's inspector usually confirms it. Your report should be close to what they will see on site.
Can you submit draws for me?
No. We prepare the package. You or your team submit it to the lender.
Related
By John Mos, Founder. Updated . We do not give tax or legal advice. Please ask your CPA or attorney.
See where your margin goes, house by house.
Tell us about your homes and your books. If we are a fit, we start with a $750 Job Cost Checkup: written findings and a fixed quote in 10 business days, credited to your first month if you sign up.