The commercial terms · Lender Draws
A Rejected Draw Costs a Month
Your lender is a stakeholder in the program whether or not anyone treats them as one. A draw that gets rejected costs you a month of carry.
Bring the site, the unit count and the drawings at whatever stage. You get a range, the drivers, and an honest read on the pro forma.
Self-perform
Dewatering, SOE and deep foundations in house
Licensed
General contractor, licensed in the state of Florida
GMP
Open book, with the contingency visible to you
Draws
Documentation your lender can actually process
Draws fail for boring, avoidable reasons
Missing lien waivers, stored materials undocumented, percentage complete that does not reconcile to the schedule of values, or a change order not yet approved. None of these is complicated and all of them stop the draw, and the cost lands on the developer as carry rather than on the contractor.
The cost of a rejected draw also lands asymmetrically. The contractor is paid a month later; the developer carries a month of interest on the whole facility and may have to fund the gap from equity. That asymmetry is why draw quality is worth treating as a schedule item rather than an administrative one.
What a clean draw needs
- Lien waivers current from every tier, not just the subs you remember.
- Stored materials documented, insured and inspectable.
- Percentages that reconcile to the schedule of values.
- Change orders approved before they appear in a draw.
- Photographs and inspection reports the lender will accept.
Building the process around your lender
Every lender has requirements and a history of what they have rejected. Ask yours for the rejection reasons from their last few deals before the first draw is prepared, and build the process to answer them specifically.
It is one email, it takes a week to get a reply, and it is worth more than any generic checklist because it addresses the actual institution that will be reviewing your submissions.
How we handle it
- 01Build draw packages to your lender's actual requirements.
- 02Track lien waivers continuously rather than at draw time.
- 03Document stored materials properly, including off site.
- 04Reconcile the schedule of values monthly.
- 05Respond to lender inspector queries quickly.
Ask your lender for their rejection reasons from the last three deals. It takes one email and it tells you exactly what to build the process around, which is far more useful than any generic checklist.
FAQ
Common questions
- Why do draws get rejected?
- Lien waivers, stored materials and reconciliation. Almost always boring and almost always avoidable.
- Who pays for the delay?
- The developer, as carry. Which is why we treat draw quality as a schedule item.
- Can materials be stored off site?
- Usually, with proper documentation and insurance. Confirm your lender's requirements early.
- How often are draws?
- Typically monthly. The cadence matters less than the package being right first time.
What we build
Garden Apartments
garden apartment construction florida
Read more →
Wrap & Texas Donut
wrap apartment construction parking garage
Read more →
Podium
podium apartment construction florida
Read more →
Mid-Rise Concrete
mid rise concrete apartment construction florida
Read more →
Mixed-Use
mixed use development construction florida
Read more →
Adaptive Reuse
adaptive reuse apartment conversion florida
Read more →
Next step
Find out what is actually wrong with it.
An inspection, photographs of what we found, and a written scope. If the honest answer is that it can wait another season, that is the answer you will get.