Construction Final draw inspection

[sergei]

Hello everybody,

My name is Sergei,
About a month ago, I did appraisal for the construction loan, and now lender ask me to sign “Agreement Concerning construction Final draw inspection”, I have limited knowledge to determinate percentage of completion different cycles of construction.
Can anyone recommend me any publication, or any courses should I take to get knowledge for complete this assignment.


Any information will be appreciated.

 

[Christine Marie]

sergei,
when i have done these, a form from the bank is supplied,

you might inquire with the loan officer,

lot cleared & graded - 4% [4%]
footingsw/steel & rough plumbing - 7% [11%]
slab complete - 7% [18%]
wall framing - 4% [22%]
roof framing - 3% [25%]
blacked in - 4% [29%]
roof sheathing - 3% [32%]
outside trim - 4% [36%]
windows & doors - 4% [40%]
exterior wood primed - 1% [41% ]
plumbing topped out & tubs -2% [43%
heat & air rough-in - 3% [46%]
electrical rough in- 2% [48%]
roof finished - 2% [50%]
insulation - 1% [51%]
siding-brick/plako - 8% [59%]
sheetrock - 4% [63%]
interior trim & cabinets- 7% [70%]
paint complete - 5% [75%]
interior doors hung -2% [77%]
plumbing & fixtures complete- 2% [79%]
electrical & fixtures complete- 4% [83%]
heat & air trim complete/air unit - 2% [85%]
flooring complete - 4% [89%]
wallpaper & counter tops - 2% [91%]
appliances - 2% [93%]
hardware & mirrors- 1% [94%]
walk; drive; patio/deck; fence -3% [97%]
landscape - 1% [98%]
final cleanup/paint touch up- 2% [=100%]


hope this is what you were asking for...

 

[Tony V]

Each bank has different percentages for work completed....I have done them for Indy Mac and Ulster Savings Bank....be sure to get the proper paperwork from the Bank....

 

[sergei]

OK, it’s really helpful, thank you so moch, but how can I estimate percentage of completion? Let say what percentage roof framing completion? Is any spreadsheet available?

 

[George Hatch]

You could build one using the table Christine provided above. A component doesn't get counted as being completed until it's complete. 50% of the roof trusses installed means the roof trusses are not complete.

Be a little careful about not counting an item as being complete until it is completed. Small builders with cash flow problems have been known to cross-deck building materials from one project to another and attempt to persuade the bank's inspector that having the materials onsite is equal to having the work completed. Often they'll start this ploy early in the process with something little. Once the inspector rolls over a little the contractor knows that everything after that is just a matter of degree. When the contractor calls for a draw inspection make sure you contact them before you go out and make it clear that you're only reporting as completed those items that are completed and give them an opportunity to put the inspection off if necessary. That way the contractor isn't paying for inspections that aren't productive for them and they have no reason to try and guilt the inspector into making compromises.

 

[Tony V]

Pay attention to what George is telling you about the Builder or owner pushing on the percetages..(kinda sounds familar??)...get the sheet from the bank...this way you have thier percentages.........If you build one on your own, you may have to do the paperwork twice....

 

[Michael Tipton]

Have you spoken with the lender to clarify your question? Has construction started, underway nearing completion or was it proposed construction?

The majority of lenders I have dealt with that offer construction-permanent financing have an in-house construction draw form or a specific draw schedule agreement for the subject. If they only want a completion inspection, then you would probably complete a 1004D Certification of Completion once the construction has been completed.

I would suggest contacting the client at request a clarification regarding their "Agreement Concerning construction Final draw inspection".

 

[Joanne Rauenzahn]

We do a lot of construction loans here - I would be glad to fax you a copy of our form that shows completion percentages if you'd like!

 

[Robert Dunkle]

“Agreement Concerning construction Final draw inspection”, I have limited knowledge to determinate percentage of completion different cycles of construction.

The "FINAL DRAW" requires 100% completion and is relatively easy to determine...you should have a CofO.

 

[Joanne Rauenzahn]

The "FINAL DRAW" requires 100% completion and is relatively easy to determine...you should have a CofO.

We often send the appraiser out when we are told it's done - and surprise! - it's not! Might be helpful to be able to give a percentage in that case? Or not go unless you know they have the CO in hand?