Frequently Asked Questions

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In the construction industry, draw inspections are a best practice used by most lenders to validate progress in conjunction with disbursing funds. The lender hires a professional inspector to visit the construction site and assess progress. This allows the construction lender to follow along with the builder and project owner to ensure the loan proceeds are going into the collateral on the loan, and to identify progress concerns as early as possible. 

The inspector is looking to show where the project is in relation to the timeline that was set out, checking the accuracy compared to the original draw request, and reviewing the budget.  

Construction loans are not fully advanced at the time of closing, rather the lender advances an amount to pre-fund an ‘interest reserve’ account, which will be used to make the loan’s monthly interest payments until construction is complete.  

• The borrower is required to provide a budget to help the lender track how much money has been advanced from each line item in the budget. 
• The construction draw schedule determines how and when construction loan funds are distributed.  

When completing a draw inspection, the draw inspector visits the site and performs many specific tasks. However, the following components are critical to ensure the successful completion of the inspection: 

• Site Verification – The first thing a draw inspector must do is to verify it is the correct property, which can be done by a photo of the address posted on the property, a building permit identifying the property, or meeting the owner/builder at the site location. 
• Site Visit – During the site visit, the construction superintendent (on commercial projects), should expect to spend time with the inspector to answer any questions that the inspector has. These questions most commonly focus on work that has been completed, the upcoming schedule, and potential delays. 
• Photos – One of the primary components of a draw inspection, photos provide proof of a thorough inspection should a claim arise. From a risk management perspective, photos can prove what was there on the day of the inspection—and what wasn’t. The more photos, the more equipped the draw inspector is to dismiss a frivolous claim or help answer any questions the lender may have. 
• Detailed Comments – The draw inspector’s comments validate the inspector’s findings, can help to explain any differences between what is completed and what is not, and help lenders understand a project’s progress and percentage completion of each line item. 

A draw inspection helps to mitigate risks inherent to construction lenders through regular on-site inspections with experienced draw inspectors who become the eyes and ears for the lender on the job site. 

Based on the findings of the draw inspection, the lender can validate the draw request, disburse the right amount of funding, and ensure that the funds do not go beyond what is needed by the project. 

A good inspector makes everybody’s job easier by: 

• Allowing the lender to know where the project is compared to the timeline they were given. 
• Ensuring the builder that they are receiving payment for work completed so that they have the funds to continue to the next phase of construction. 
• Aiding in the smooth and timely completion of the project for the project owner. 

Construction projects, and, particularly, large commercial projects, can be complex to manage. A professional draw inspector is crucial to the long-term success of the project, using the right tools, knowledge, and certifications to get the job done quickly and reliably. Construction projects are funded by high-risk construction loans that require a long time to process. A construction draw inspector is typically hired by the lender to help ensure timeliness by identifying construction issues and preparing change orders that can modify the scope of the project.  

Each construction inspection project that comes to CIS can vary in complexity. As such, we have a wide range of independent inspectors on our team with varying backgrounds including: general contractors, Certified Master Inspectors, construction managers, estimators, surveyors, architects, engineers and home inspectors.

Most projects are inspected by the same inspector throughout the life of the project. We feel this allows the inspector to have a full historical view of the project which we have found to be beneficial especially in the more complex construction projects. 

Absolutely! We have found that having a wide range of inspectors with varying skill sets available to us, allows us to determine the appropriate inspector to assign based on the project’s complexity. 

• A completed construction line item budget.
• A draw request in an Excel spreadsheet (or AIA format).
• Project plans in electronic format (PDF), if available.
• Contractor’s cost breakdown providing additional details as to the scope of work for budgeted items, if available. 

The use of unbiased, third party inspectors is vital as it provides a checks-and-balance system for construction projects, keeping the lender informed of the actual levels of completion of a project which helps to manage the risk of a loan not becoming upside-down and keeps the entire process at an arm’s length position. Additionally, they provide an objective opinion through the inspector’s knowledge of the construction process and experience in the field. Use of third party inspectors also offers another objective opportunity to analyze projects in an effort to help keep each one on schedule and within budget. 

 Depending on the time of receipt of the inspection request, we typically process requests the day we receive them. Our goal is always to have “boots on site” within 24-48-hours of receipt of the request. Upon receipt of photos and results from the onsite inspector, our well-trained in-house staff begins processing reports here in our office. Our goal is to have reports sent to the lender within two-four days of our receiving the requests. 

Yes, we do provide all of the above services to our clients across the country. Our firm has many years of experience in performing these services for our lenders. Working with highly skilled construction estimators and project managers, we are able to develop costs for projects locally, regionally and nationally. 

• A full set of construction drawings including architectural, structural, civil, mechanical, electrical, plumbing and landscape plans
• A complete line item budget.
• Either a complete schedule of materials or set of project specifications.
• A copy of the owner/contractor agreement.
• Any available contractor or supplier estimates and a project schedule 

Yes, we provide both construction oversight and owner representation for our clients. The complexity of the project will determine the skillset that will be assigned to the site to perform the detailed scope of work. 

With 25+ years of experience in the construction industry throughout PA and OH, Construction Inspection Services of PA is well-equipped to tackle your draw inspection needs. We get what you need fast to ensure there is no delay in funding a draw.  

• Simplified quoting with transparent rates
• Professional report by our professional team, including a completed draw schedule and internal and external progress pictures. 
• Two-step verification between our in-field inspector and in-office review. 

Contact us today for more information or to get started.