Progress inspections or completion evaluations, verify the advancement of residential or commercial construction projects for lenders. During the process, the progress inspector engages with the builder and lender, serving as a mediator to help facilitate the draw.
The progress inspections help mitigate risks that are inherent to the lender and essentially becomes the eyes and ears for the lender on the project site.
To ensure the adequate distribution of funds, a borrower will send periodic draw requests for labor and materials used during their construction efforts according to the draw schedule. The lender will then disburse the funds based on the confirmation of the construction progress provided by the inspector.
