A draw request on a construction loan should be accompanied by all of the following EXCEPT:

A draw request on a construction loan should be accompanied by all of the following EXCEPT:

• A. Lien releases from subcontractors
• B. Expenses from similar contracts
• C. Inspection reports
• D. Change orders, if applicable

Answer: (B)

When a draw request is submitted on a construction loan, the lender is confirming that the project is progressing as claimed, there are no liens against the job, and any changes to the scope are properly documented and funded. Lien releases from subcontractors help protect the lender by ensuring there are no outstanding claims that could attach to the property and by allowing funds to be released for completed work. Inspection reports provide on-site verification of actual progress and quality, tying the draw to real work completed rather than just invoices. Change orders, when applicable, document approved changes to the scope and the corresponding cost adjustments, so the draw reflects the updated plan. Expenses from similar contracts don’t directly demonstrate progress on the current project or protect the lender’s security, so they aren’t typically required with a draw request.

When a draw request is submitted on a construction loan, the lender is confirming that the project is progressing as claimed, there are no liens against the job, and any changes to the scope are properly documented and funded. Lien releases from subcontractors help protect the lender by ensuring there are no outstanding claims that could attach to the property and by allowing funds to be released for completed work. Inspection reports provide on-site verification of actual progress and quality, tying the draw to real work completed rather than just invoices. Change orders, when applicable, document approved changes to the scope and the corresponding cost adjustments, so the draw reflects the updated plan. Expenses from similar contracts don’t directly demonstrate progress on the current project or protect the lender’s security, so they aren’t typically required with a draw request.