Draw Inspection FAQ's
What is the 10% contingency reserve in the plan, and how do I use it?
- Each project has a minimum of 10% reserve and maximum up to 20%. This additional money is above and beyond for any unforeseen problems within the scope of your project. You may use this for any health and safety issues and as the plan nears completion you may upgrade components or even purchase appliances. All unused project funds not utilized will be applied directly to your principal balance.
- Yes. Keep records for your project but not necessarily needed at the Draw Inspection when a General Contractor is in place.
- Permits insure proper work is completed based on local city and town codes.
- Critical permits are: electric and plumbing. Structural work will require a building permit. All funds related to these components MUST have permits in place prior to having funds released.
- Permit Exceptions – In some rural areas, permits may not be required. It would be up to the General Contractor or borrower to then document this for the lender.
