Construction Draw Inspection: What Inspectors Look For (And How to Prepare)

A construction draw inspection can feel like a test you're not sure you studied for. The inspector shows up, walks the site, and their report determines how much money you get funded — and when.

Most GCs who struggle with inspections have the same problem: they're not thinking about the inspector's checklist ahead of time. Here's what inspectors actually evaluate — and how to prepare so the construction draw inspection becomes a formality rather than a funding bottleneck.

What Is a Construction Draw Inspection?

A construction draw inspection is a third-party site visit ordered by your construction lender to verify that the work claimed in your draw request has actually been completed. Before releasing funds, most lenders want confirmation that the percentage-complete figures on your AIA G703 match what's actually happening on the ground.

The inspector is hired by the lender, not the GC. They work independently and their report goes directly to the loan officer. Their job is to protect the lender's capital — not to approve your draw.

What Inspectors Actually Check

Percentage of Completion vs. Your G703

This is the core of the construction draw inspection. The inspector walks each phase of work — foundation, framing, rough MEP, drywall, finishes — and forms their own view of what percentage complete each trade is. They compare that to what you've claimed on the G703.

If you claim 70% complete on framing and the inspector sees 50%, your draw gets reduced to reflect the inspector's assessment. The 20-point gap disappears from your funding until the next draw.

This is why honest percentage claims matter. Padding percentages to pull forward cash might work once — but inspectors on the same project tend to remember prior discrepancies, and lenders notice patterns.

Stored Materials on Site

If you're claiming stored materials — items purchased but not yet installed — the inspector will verify they're physically on site. Materials claimed but not present will be disallowed. Keep materials organized and clearly identifiable. A stack of labeled crates reads better than a pile of unmarked boxes.

General Project Progress vs. Schedule

Inspectors also develop a sense of whether the project is tracking on schedule. A project that's three months in but looks like six weeks of work is a flag — not necessarily for this draw, but for the lender's risk view going forward. Projects significantly behind schedule tend to get more scrutiny on subsequent draws.

Site Safety and Access

Inspectors note obvious safety violations and site access issues. This rarely blocks a draw directly, but repeated violations can lead a lender to request an additional inspection before the next draw — which costs you time and momentum.

How to Prepare for a Smooth Inspection

Complete the work before claiming it. Only claim percentages you can defend if someone walks the site that afternoon.

Walk the site yourself first. Before the inspector arrives, do your own walkthrough with the G703 in hand. For each line item, ask: does what I see match what I've claimed? Fix any discrepancies before the inspector does.

Organize stored materials. If you're claiming stored materials, make sure they're on site, clearly labeled, and accessible. Have the purchase invoices ready.

Coordinate with your subs. The inspector may ask questions about specific trades. Make sure your foreman or site super knows the inspection is coming and can answer basic questions about completion status.

Submit your draw before the inspection is scheduled. Many lenders let you submit the draw package first and then kick off the inspection — this lets the lender get the inspector moving immediately rather than waiting for your package before scheduling.

What Happens If There's a Discrepancy

If the inspector's assessment is lower than what you claimed, the lender will typically fund at the inspector's percentage. The shortfall rolls into the next draw.

You can dispute an inspection result, but it requires documentation — timestamped site photos, sub sign-offs on completion percentages — and takes time. Better to avoid the discrepancy in the first place.

How DrawStack Helps

DrawStack tracks your percentage-complete history across every draw, giving you a built-in record of what was claimed previously. The AI Draw Auditor flags percentage jumps between draws that might invite inspector scrutiny — so you can review your claims before submission, not after.

See how DrawStack tracks draw history →