Who orders the draw request for an FHA 203k project?

By
Home Inspector with 203kOnLine.com, covering the USA S0289

Who orders the draw request for an FHA 203k project?

Who's draw request, a request for money, is it? It is the contractor's draw request. The contractor would typically know more than anyone when they are in need of some cash flow to keep the project going strong.

So, I get a call from the contractor, "When can you be out for a draw inspection?" he says. I can be there in twenty minutes was my reply. NO, that is too soon. How about this coming Friday. I agreed and copied the borrower's. It is always nice when we are all there together. This way we can all see what the contractor is requesting and can comment on it or about it.

1st step is the contractor should have column 3 filled out with the requested items prior to the inspector's arrival... good luck with that. There are a few contractors that have this figured this out. It is the fastest way to get your money. So many just don't do anything and say "just look at everything and pay me what you can." NO, that isn't a good idea. Why, it wastes my time as the inspector. I'm not going to look at everything on the list when he or she already knows they only worked on one or two items. That is what I'm there to look at. Nothing more. I had one client call for a draw and ask "how much other than the items on the draw request are you going to be looking at?". I responded "if you mean, am I going to be looking at your Marijuana plants, no, that isn't in my scope of work."

2nd step, is for them to actually sign the draw request. That is what makes it their request. It is just a plain piece of paper till then. The contractor must sign before we inspect the items they are requesting payment on.

3rd step is for us to look at those items, just those items. I don't want to hear from the client or their great uncle who is a construction expert about items not yet being requested for payment. If the client agrees these items are completed in a professional workmanlike manner then they sign the paperwork. That is their chance to say "NO, this is not acceptable" for any or all of the items requested in column 3, if that is what they feel, they can merely put a single line through that line item amount requested and in column 3 write in a number they are happy with to include a big "$0.00"  in column 4, if that is what they think they should pay.

4) Then we process the paperwork, tally up the numbers, and sign prior to sending to the draw dept.

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Posted by

Mike Young, 203k Team Leader    Mike ready for your 203k order

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