Construction Loan Draw Inspection

It covers the core items a lender or inspector needs to confirm before approving a draw: project identification, work in place, percent complete, draw documentation, lien waivers, site safety, and the final funding recommendation. The template is built to compare what was requested against what is visibly installed on site. It also captures deficiencies, incomplete work, and any permit or AHJ-related concerns that could affect the draw decision.

Use it at each scheduled draw request, typically after the contractor submits a pay application and before funds are disbursed. It works for early-stage foundation work, rough-in phases, enclosure, interior buildout, and substantial completion. If the project is paused, delayed, or materially changed, the template still helps document the current state before any partial release of funds.

A lender inspector, third-party field inspector, or other qualified reviewer should complete it, depending on your lending workflow. The person using the template should be able to compare the site conditions to the schedule of values, recognize obvious construction deficiencies, and note safety or code-readiness issues. If your process requires it, the borrower, GC, or project manager can also attach supporting documents, but they should not be the sole reviewer.

No. This template is a funding and progress verification tool, not a substitute for inspections required by the building department or AHJ. It can record visible permit or code issues, but it does not certify compliance with all applicable codes. If the project is in a regulated stage, use this alongside required municipal inspections and lender conditions.

The most common mistake is approving a draw based on invoice amounts without confirming installed work on site. Another is accepting lien waivers that are missing dates, signatures, or the correct draw period. Teams also miss out-of-sequence work, incomplete safety controls, and change orders that were not reflected in the draw request.

Adjust the work-in-place section to match the project phase, such as sitework, structural, MEP rough-in, or finish-out. You can also add fields for retainage, soft costs, contingency use, or specific lender conditions. For larger projects, many teams add subcontractor-specific waiver tracking, photo attachments, and a separate line for approved change orders.

Yes. It pairs well with photo documentation, document collection, and workflow tools that track approvals and holdbacks. Many teams use it with a loan administration system, shared drive, or inspection app so the field notes, lien waivers, and signed approval stay linked to the same draw request. That makes it easier to audit later if a dispute arises.

An ad hoc site visit often leaves gaps: no consistent percent-complete estimate, missing waiver tracking, and no clear record of why a draw was approved or held back. This template standardizes the review so each draw is judged against the same checklist and documentation set. That consistency helps reduce funding errors and makes exceptions easier to justify.