What is a construction draw site inspection and report?

A construction draw site inspection (also known as a construction loan inspection, a construction progress inspection, construction loan monitoring, a bank draw inspection, a work-in-place verification or a construction site inspection) is an on-site review of work in place and stored materials to verify the accuracy of a contractor’s/owner’s construction loan or equity draw request, followed by a report detailing findings. The inspection and report confirm that the money being requested aligns with actual progress on the project, helping to protect the equity provider or lender from overfunding, ensure the project is on schedule, and verify that funding proceeds are used for their intended purpose.

Smart Site Reviews acts as the lender’s “eyes and boots on the ground” to make sure clients’ projects stay on budget and on schedule. We provide independent construction draw site inspections for projects in North Carolina, southern Virginia and northern South Carolina.

How does a construction draw site inspection help manage construction risk?

During an inspection, we:

• Conduct a site inspection and compare the requested draw to the actual completed construction at the project;
• Verify stored materials (when applicable);
• Identify front-loading or other draw schedule issues;
• Identify visible construction deficiencies, delays or scope changes;
• Take note of potential issues relating to labor or material shortages, remaining funds and schedule;
• Take sufficient photos and videos to allow our clients to support their decision to fund or not to fund; and
• Provide a detailed report of our findings that includes a clear recommendation to fund or not fund the draw.

This process helps construction lenders and equity sources avoid over-funding and maintain appropriate loan-to-cost and loan-to-value positions throughout the construction project, helping to further secure their collateral or investment.

What happens if a construction draw site inspection and report results in a recommendation to not fund?

If an inspection identifies incomplete or insufficient work, or other issues with the project, the lender or equity provider may delay disbursement until the issue is corrected or adjust the disbursement amount. Smart Site Reviews representatives provide detailed documentation and photos and videos to help all parties quickly resolve any discrepancies and keep the project moving forward.

What types of construction projects do you inspect?

Smart Site Reviews provides construction draw site inspections for:

• Office, industrial/manufacturing/logistics, retail and mixed-use;
• Multifamily, including apartments and condos;
• Hospitality, self-storage, healthcare/life sciences and education/civic;
• Parking/structured facilities, specialty and other commercial properties; and
• Residential subdivisions and townhome communities (entire projects).

We focus on commercial real estate and residential subdivision projects, not individual owner-occupied single-family homes.

Where do you perform construction draw site inspections?

Our inspection service area includes:

• North Carolina (e.g. Charlotte, Raleigh, Durham, Greensboro, Wilmington, Jacksonville, Fayetteville, Rocky Mount, Wilson, Winston-Salem, Asheville and other NC markets).
• Southern Virginia (e.g. Danville, Martinsville, Bristol, Richmond, Norfolk and nearby markets).
• Northern South Carolina (e.g. the greater Charlotte-adjacent and Upstate markets such as Rock Hill, Fort Mill and the Greenville–Spartanburg region).

How often are construction draw site inspections performed?

Most construction lenders and equity providers request monthly inspections or inspections timed to each draw request. For higher-risk projects or accelerated construction schedules, inspections may occur more frequently, depending on the client’s construction monitoring policy. Smart Site Reviews works with each client to align our site inspection schedule with their draw and funding process.

What do your construction draw site inspection reports include?

Our inspection reports are user-friendly and typically include:

• Assessment of sufficiency of available funds;
• Comments on schedule status and any observed delays;
• Notes on stored materials, change orders and visible deficiencies;
• Extensive site photos and video, giving the lender a clear view of project progress.
• A clear recommendation to fund or not to fund the draw; and

Reports can be customized to meet a client’s internal construction administration requirements or delivered using the client’s own form.

What types of entities use your construction draw site inspection services?

Our inspection services are used by:

• National, regional and community banks and credit unions;
• Private debt sources, including bridge, development and mezzanine lenders, and hard money lenders;
• Equity providers and JV partners; and
• Other capital providers looking for a third-party construction risk review.

• National, regional and community banks and credit unions;
• Private debt sources, including bridge, development and mezzanine lenders, and hard money lenders;
• Equity providers and JV partners; and
• Other capital providers looking for a third-party construction risk review.

We work directly for the lender or equity provider to deliver thorough, independent and focused reports.

How much does a construction draw site inspection cost?

The cost of an inspection depends on project size, scope, complexity and sufficiency of documentation. Smart Site Reviews provides competitive pricing and can discuss volume-based options for lenders managing multiple loans on similar projects. Contact our team for a custom quote based on your inspection needs.

How fast is a construction draw site inspection report delivered?

Most inspection reports are completed within 3–5 business days after receipt of the request from the client, depending on contractor responsiveness. Smart Site Reviews prioritizes timely reporting so lenders and equity sources can keep funds moving and minimize project delays.