Construction Draw Schedule

[Dave Godfrey]

Hi everyone. I am working with a lender on a renovation project on which there will be draws.

This is my first time going thru this process. He's "flexible and willing to work with me and my contractor". It's a community bank. I do believe he is flexible but want to make sure I don't look like the new guy on the block, so to speak.

A couple of questions:

-- How detailed are typical draw schedules? (Activities, timing/duration, material cost projections, etc.)

--Does an inspector come out and look at the property first (on Day 1, before the project starts... and then comes back at the end of Phase 1). OR... do they just show up in the middle of the project (say, week 3). Stated differently, do they do an initial assessment?

--Material costs... Request a certain % of the entire project up front... OR just equivalent to each Phase of Work. What do Lenders typically do/allow?

--Anyone have a draw schedule that you would be willing to share?

Project specific info:

$50K reno budget (~$25K Material, $25K Labor)

Number of Draws: Lender says 3 or 4 is fine (thinking 3)

2 months turnaround

Early project needs: Need HVAC replacement done right away (subbing this portion out; Labor and materials ~$7K): Need to pay a roofer ~$2K in the first couple weeks also. Bathroom gut job.

Any insight would be much appreciated! Thanks!