FAQ
The inspection report is the primary evidence lenders use when reviewing a draw. This page explains what a typical report contains, how completion percentages are calculated, how photos should be captured, and how stored materials and change orders are handled.
Reviewed by RAZE ·
A typical report includes project identification, inspection date, site observations, photographs, completion percentages by budget line item, inspector comments and relevant exceptions. Requirements vary by lender and may also include stored materials, permit status, workers on site, schedule observations or previous inspection comparisons.
See how RAZE standardizes inspection reportingThe inspector evaluates visible work against the defined scope and assigns a completion percentage to each applicable budget line. The assessment should be based on physical progress rather than time elapsed, money spent or contractor estimates alone.
See how RAZE standardizes inspection reportingThere is no universal number. The report should include enough photographs to support each material observation and completion percentage. Required views may include the address, exterior elevations, major rooms, construction stages, stored materials and any exceptions or incomplete work.
See how RAZE standardizes inspection reportingGeolocation and timestamps strengthen the evidentiary value of inspection photos by helping confirm where and when they were captured. Lenders should also consider secure in-app capture, metadata retention and controls that reduce the possibility of uploading outdated or unrelated images.
See how RAZE standardizes inspection reportingNot always. Photographs provide important evidence but may lack context, scale or complete site coverage. Lenders may also require an independent inspection, budget reconciliation, invoices, lien waivers, change-order documentation and internal review before releasing funds.
See how RAZE standardizes inspection reportingThe inspector may document visible concerns when required, but a standard draw inspection primarily verifies progress rather than providing a comprehensive workmanship, engineering or code-compliance evaluation. Additional professional review should be ordered when quality or structural concerns require specialized expertise.
See how RAZE standardizes inspection reportingNot unless code compliance is specifically included in the inspection scope and the inspector is qualified to make that determination. Municipal inspections, permits and certificates of occupancy remain separate from construction draw verification.
See how RAZE standardizes inspection reportingStored materials may be considered when permitted by the loan agreement and lender policy. The inspector may be required to verify their location, quantity, condition, ownership, security and relationship to the project. Off-site materials often require additional documentation and controls.
See how RAZE standardizes inspection reportingApproved change orders should be incorporated into the project budget and inspection scope before completion percentages are evaluated. Unapproved or undocumented changes can create discrepancies between visible work, the original budget and the requested draw.
See how RAZE standardizes inspection reportingRAZE delivers standardized field capture, photographs and completion data so lenders can compare projects with confidence.
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