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Form for construction draw inspection

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Pat Butler

Thread Starter
Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Anyone have a form, or recommended language, to be used with a construction draw inspection? Something with a little bit of disclaimer language to it.

I've usually received a form from the lender that they want filled out. This lender faxed over the contractor's sworn affidavit and told me to use 'whatever' form I had. So I'm looking for 'whatever.'

Pat
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
I would say use the one of which you are the most familiar.
However, the biggest problem I have seen with most draw sheets is that they work great for cookie cutter S/D homes; but they usually do not work so well on luxury homes with extrordinary features. If you are looking for a typical draw sheet for the typical home, then use one that you have in files from a past loan. If it is a special home or a massive remodeling job, you may have to sit down with the bank officer and come up with a plan.

What ever you use, make sure it adds up to 100% :wink: (past experience here, I saw one form that added up to 105, well.... until I pointed it out to the banks. :oops: )

P.S., I will dig around and see if I can find an old form that I liked the most.
 

jtrotta

Senior Member
Joined
Jan 16, 2002
have seen several, there were a couple I liked but, they all need improvement. Was thinking of putting one together, just have not had the time, one for new construction and one for remodeling. We need better than the ones their using now.

8)
 

Blue1

Elite Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
In my experience, the investor usually has their own draw sheet. I have found that the % forms are the best. Those that show a % for any particular line item. The more line items the better. Watch out for foms with only a few line items. It can become hard to "buy off" a particular stage of construction if a particular line item includes too much. That's because contractors have a habit of running behind in my experience. The more "broken down" the construction process is, the easier it will be for you to come up with an accurate draw inspection. BEWARE.......don't "buy off" anything that's not done. I have found SOME contractors will try to convince me to "buy off" an item even though it's not done. They'll say things like "We'll have it done by the end of the day" OR "The materials will be here in a couple of hours" OR "We need this draw so we can continue." Be strong, be brave and DON'T "buy off" anything that's not completely, 100% finished. (I speak from experience)
 

Pat Butler

Thread Starter
Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
That's the problem that I've always run into. The lender will provide a form that breaks the job down according to 'who' is getting paid. So there might be one line that says "Joe's Carpentry labor/materials" that has a $60,000 line item. Then, they'll show that they need a $10,000 payout and I'm suppose to accurately determine whether or not 16.6% of the carpentry materials/labor has been completed.

The forms with lots of items broken down are great, but they never match the reality of a construction project that requires payments to individuals who does various portions of the work.
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
What I hate is when a builder calls for weekly inspections, you get out there, and they must have 3% this time. :x Too many of these petty, penny draws is a BIG red flag that this builder is not doing so well, or may be using the money on another project. That is why the rule is, if it is not installed and finished.... NO BUCKS.
 
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