This is a slide show

1. This is a slide show Just click your mouse button on the bar to the right each time you want to move to the next slide. Use your back arrow when finished to go back to our home page. Use browser arrow to return to our home page

2. What happens once the loan closes? How do I get paid for the construction work? Use browser arrow to return to our home page

3. Draw Request Procedure • Construction begins • Contractor calls the inspector for an appointment • Owner should be notified by the contractor • Draw Inspection • Contractor fills in column 3 of draw request form • Contractor & homeowner sign the draw. • Inspector then verifies that the items are complete per the request • Inspector corrects figures in column 3 if necessary Use browser arrow to return to our home page

4. Draw Request #1 (step 1) Contractor fills in column 3 Use browser arrow to return to our home page

5. Draw Request #1 (step 2) Inspector corrects column 3 or agrees with column 3 and it is ready to submit to the lender for payment

6. Draw Request #2 (blank) Column 4 from previous draw is now in column 2 Use browser arrow to return to our home page

7. Draw Request #2 This is Draw #2 ready for payment. The contractor has filled in column 3 and you agreed. The lender filled in column 4.

8. Actual Draw Amount • Column 3 is what the inspector recommends that the lender pay based on the percentage of completion • The lender will fill in column 4 • The lender will also hold back a “10% Hold Back” of these amounts until the lien period has passed (typically 35 days from the project completion) Use browser arrow to return to our home page

9. Draw Request Procedure • Draws will continue in this manner until each item has been fully paid or moved to the contingency reserve. • If an item is completed for less money that originally listed the excess money can be moved to the contingency reserve. • If an item costs more than originally allotted then it can be paid from the contingency with a change order Use browser arrow to return to our home page

10. Change Order • A change order is intended to provide funds for items not originally planned on. • Dry rot discovered during the construction phase • Concealed damage that must be corrected • Additional items required by city or county building inspection department • Changes in the scope of work otherwise will be paid for by the owner Use browser arrow to return to our home page

11. Points to remember • Only pay for work complete at the time of the inspection • not for work that will be completed in an hour • not for materials not yet installed even if they are on site (carpet and cabinetry excepted) • Always sign the paperwork last • Fill in the draw request “back” • Turn in the paperwork promptly Use browser arrow to return to our home page

12. Back of the Draw Request • This is your bill for the services rendered • Don’t fill it in . . . don’t get paid • This is the confirmation that all is complete • Be sure to fill out the body of the report • Be sure to sign and date this document Use browser arrow to return to our home page

13. “Progress Payment Lien Release”and “Final Lien Waiver” • Each draw request should be accompanied by a “progress payment lien release” • this is a statement by the contractor that all sub contractors and materialmen have been paid • most lender’s won’t pay the draw without it • “Final Lien Release” or “Waiver” is due at the completion of the project Use browser arrow to return to our home page

14. Notice of Completion • The notice of completion is a form signed by the owner of the building that indicates • the work was done to their satisfaction • the work was done in a professional manner • there are no problems with the project • Should be turned in with the “Final Lien Waiver” • Project is complete Use browser arrow to return to our home page

15. Thanks for watching the slide show • Use your browsers back arrow to go back to our home page, or • Click your mouse button to watch it again. Use browser arrow to return to our home page