5 Things QuickDraw Looks for on an Invoice
Invoices are a very important component of the fund control process. They are legal documents that show precisely what has been completed in the field. QuickDraw Fund Control depends on timely and accurate invoices during draw requests. An invoice helps the lenders to determine if a particular line item draw request is approved and monies can be released for funding.
Below are some of the key items QuickDraw looks for when reviewing construction loan invoices:
1. Using the Correct Release Forms
The release must match the submitted invoice. There are different release forms for different points of construction progress. For instance, if work is complete and a specific contractor has yet to be paid, a conditional progress form is required. This helps protect all parties and prevents issues such as liens being placed on the property by a disgruntled contractor, which would be bad for everyone.
2. Appropriate Time Periods
The invoice must represent the correct time period that relates to the specific phase of construction. If the time periods on invoices don’t match up to the draw request schedule, the draw request won’t be able to be processed properly.
3. Project Locations
Every state has different Release California’s release documents are directed by the California State Contractors License Board, while other states have their own governing rules and regulatory committees. QuickDraw provides Fund Control services throughout the country and this important requirement is one that we always review closely
4. Correct Construction Phase
In larger developments with multiple phases, QuickDraw always looks to make sure that the invoice represents the correct phase. For example, if there is a total of 50 homes being built, but the first phase is only 12 homes, we verify that the invoice pertains to only those units.
5. Accurate Reporting
Invoices need to be accurate and representative of the completed work on the project. QuickDraw performs on-site inspection services. What we observe and photograph must correspond with what has been submitted on the invoice. Otherwise, an adjustment to the invoice or draw request is then required.
QuickDraw Fund Control is here to help protect the lender, the borrower, and the general contractor. Proper invoices and releases are a vital part of this process, as it ensures that all parties can agree on the progress being made before more funds are released. For more information about invoicing or QuickDraw’s fund control, cost analysis and on-site inspection services, contact us today!