Draw Request Documentation: What Lenders Should Require

Every construction draw is a small audit. When documentation is thin, lenders fund work that may not be complete, may not match the approved scope, or may already be subject to subcontractor liens. A clear draw checklist keeps the process predictable for borrowers and protective for the institution.

The Core Package

A complete draw submission should include:

• Signed AIA G702/G703 or equivalent application and continuation sheet.
• Updated schedule of values reflecting approved change orders.
• Lien waivers from the GC and all subcontractors through the prior draw period.
• Stored materials documentation with title, insurance, and off-site location if applicable.
• Inspection report or consultant verification of percentage complete for major line items.
• Updated project schedule noting any delays or recovery plans.

Red Flags on Review

Front-loaded schedules of values, repeated retainage releases without substantial completion, and line items that jump disproportionately between draws all warrant deeper review before funding.

Independent consultants should reconcile the application against site observations — not only against the prior application.

"Fund the documentation, not just the percentage on the form."