What does a draw inspector for an FHA 203k project do?
The "consultant" has a couple different rolls and it is easy to get them confused and they do get confused all the time.
1) As a consultant, we help the client create a scope of work so all of the contractors can bid the same list. It creates less confusion and if the specification is written well enough no one will have any questions.
The more detail, model numbers, etc that the borrower can supply up front the better the project will flow through the completion. During this time we work exclusively for the client, the borrower.
2) Here comes the confusion. Once the project funds and the works begins the consulting is over and complete. Now the roll is as a draw inspector. Two distinctly different rolls. Now we work for the lender.
Many clients believe that the consultant is still the "consultant" and that just isn't so, It doesn't mean we can't answer questions as a consultant and help the client through some of their issues that may crop up from time to time but our roll is to inspect the work that the contractor has requested on each draw inspection. We won't, however call the contractor and criticize them for not doing their job.
What a consultant is NOT -
Clients constantly call us telling us the contractor isn't doing their job. They didn't show up today for work. They haven't had anyone on the job this week. The contractor showed up for an hour today and left and hasn't been back.
All those are valid issues but YOU, the client are the contractor's boss and it is YOU that must call the contractor and let them know what YOU expect. YOU are their boss, not the inspector. We see the project once every thirty days and look at the items that are complete or patially complete and authorize payment to the contractor. Nothing more.
The guideline indicates the contractor, once started, should have someone present each day working on the project till it is completed. That person may be picking up parts to be used on the project so use some discretion. He can leave to pick up materials that isn't an issue.
When the draw inspection happens it is wise for the borrower and contractor to both be present so everyone can see what the results are and how they were derived. If you have a representative there that representative should NOT be asking questions about items NOT on the draw request and specifically not in the scope of work. We are there to look at the items requested and nothing more.
We are not there as a quiz, to be be questioned on issues that are between you and your contractor. If that needs to be done then send and email with the issues clearly spelled out and the desired result you are looking to achieve. Then we will see if we can ease the situation for you as a courtesy not because it is our job, it isn't. Don't surprise us when we think we are doing a draw inspection and arrive to find you and the contractor ready to exhange blows. It just isn't appropriate. Lets get the a resolution long before that.
Something that comes up way to often is when the borrower failed to include large amounts of work in the scope of work as they wanted to pay for it outside the loan. But they want us inspect it... if it isn't in our scope we aren't going to waste our time inspecting it. A better way to handle this type of issue is to include it in our original scope of work put the money down with your down payment if it is large enough you may actually be free of PMI... saving you thousands and thousands of dollars. It is important to be honest with your consultant in the beginning and not hide this type of "secret plan" for additional work on the side and outside our scope of work. If it is our scope of work then don't ask us to inspect it and don't ask us to make demands on the contractor about that work outside our scope of work.
Downtown
