Construction Draw Inspections

(aka: “Yes, the bank really wants to see it”)

If you’re building a house, doing a big renovation, or taking on a construction loan, you’re going to hear the term Construction Draw Inspection sooner rather than later. And if your first reaction is, “Wait… another inspection?”—you’re not alone.

The good news? This one isn’t about nitpicking your work or slowing things down. It’s mostly about money. Specifically: when it gets released.

Let’s break it down without the construction-lingo headache.

What is a construction draw inspection?

A construction draw inspection is a progress check performed during construction to confirm that the work tied to a specific loan “draw” (payment) has actually been completed.

In plain terms:

• The builder says, “We’re done with this phase.”
• The lender says, “Cool, prove it.”
• An inspector shows up, looks around, and verifies progress.
• The lender releases the funds.

No inspection = no money. Simple as that.

Why lenders require them

Banks aren’t being annoying just for fun. They’re protecting their investment.

They want to make sure:

• The project is moving forward
• The work matches the loan schedule
• Funds are being used for actual construction (not… other things)
• The property value is being built as planned

Basically, they don’t want to pay for framing if there’s still just dirt and good intentions on-site.

What inspectors are checking

This isn’t a full code inspection or a deep quality review. It’s more of a “status update with photos.”

Inspectors typically verify:

• Completed phases (foundation, framing, rough-ins, etc.)
• Percentage of completion
• Materials on-site (if they count toward the draw)
• Obvious red flags or incomplete work

They’ll often take photos and compare what they see to the draw schedule provided by the lender.

What a draw inspection does not do

Important distinction here.

A construction draw inspection does not:

• Guarantee the quality of workmanship
• Replace city or county inspections
• Catch hidden defects
• Approve or reject design choices

If something looks obviously wrong, it’ll likely be noted—but the inspector isn’t there to critique your builder’s craftsmanship or play building department.

How often do draw inspections happen?

That depends on the loan, but most projects have multiple draws, such as:

• Foundation complete
• Framing complete
• Rough plumbing/electrical/HVAC
• Drywall
• Substantial completion

Every draw usually means… yep, another inspection.

How long it takes (and how fast money moves)

Most draw inspections are quick—often 15 to 45 minutes on-site.

Once the report is submitted:

• Some lenders release funds in a day or two
• Others take longer (because, banks)

Pro tip: scheduling the inspection after the work is truly complete saves everyone time and prevents delays.

Common mistakes that slow things down

These pop up all the time:

• Requesting a draw before the phase is actually done
• Incomplete work that “almost counts”
• Missing documentation
• Poor access to the site

Remember: “Basically finished” is not the same as “finished” in lender land.

Bottom line

Construction draw inspections are less about judging your project and more about keeping the money flowing in the right order. Think of them as checkpoints—slightly annoying, mildly bureaucratic, but ultimately there to protect everyone involved.

If the work is done, the inspection is usually painless.

If it’s not… the inspection will absolutely notice.