How are stored materials verified?

The documents.

Stored materials are funded before they are installed, so the paperwork does the work an installed wall would otherwise do. A lender that funds them usually asks for:

• The invoice or bill of sale, naming the project, with quantities and model or lot numbers.
• Proof of ownership, showing the materials are paid for and belong to the borrower or contractor, plus a supplier lien waiver where the loan agreement calls for one.
• Insurance that covers the materials where they are kept.
• For off-site storage, a storage agreement and a location approved in writing, with the materials kept apart and labeled for the project. The AIA A201 general conditions, a common construction contract form, make off-site payment depend on advance owner approval, an agreed location and procedures that protect the owner's title.

On the pay application itself, the AIA G703 continuation sheet carries stored materials in their own column, so the request shows how much is for materials not yet in place.

The site check.

On site, the inspector photographs the materials, compares counts, labels and model numbers with the invoice, and notes how they are protected from weather and theft. Off site, a lender may order an inspection at the supplier or storage yard, or decline to fund those materials until they are delivered.

The follow-up.

Verification does not end at funding. At the next draw, the materials funded last time should be installed. When they are missing, see what happens if a draw inspection shows less work than requested.

Why it matters for lenders.

Money for stored materials goes out before the work exists. The NCUA's examiner's guide expects disbursements to track real progress, and a stored-materials draw is the easiest place for funding to run ahead of it.

How RAZE handles it.

The lender sets the required questions and photos on each RAZE order, so a draw that includes stored materials can require photos of the materials, their labels and where they are kept. Every photo carries GPS coordinates and date and time stamps and links to the draw sheet line it supports. The inspector documents what is on site; the lender reviews the paperwork and decides what to fund.