What Lenders Actually Look For in a Construction Draw Package

If you've ever submitted a draw and then waited two weeks to hear back, the most likely culprit isn't a slow lender. It's an incomplete draw package.

Lenders have a checklist. When something's missing, the draw goes into a review queue while someone tracks down the missing piece. Then it goes back to the queue. That's where your week went.

Here's what lenders actually look for — and how to make sure your package is complete before you send it.

The Core Draw Package Components

1. AIA G702 — Application and Certificate for Payment

This is the top-level draw request document. It shows:

• Original contract value
• Changes via approved change orders
• Total work completed and stored materials to date
• Less retainage
• Net amount requested this draw

Every lender wants this. If you're not generating it from your SOV automatically, you're doing it by hand and introducing errors.

2. AIA G703 — Continuation Sheet

The line-by-line breakdown of the G702. Each SOV line item shows:

• Scheduled value
• Work completed previous draws
• Work completed this draw
• Materials presently stored
• Total to date and percent complete
• Balance to finish

Lenders use this to spot-check the G702 totals and understand where the project stands at a line-item level.

3. Supporting Invoices

Every dollar on the G703 should be backed by an invoice. Lenders want to see:

• Invoice date and number
• Vendor/subcontractor name
• Description of work matching the SOV line item
• Amount that reconciles to what's being billed

Missing invoices are the #1 reason draws get kicked back.

4. Lien Waivers

Most lenders require conditional lien waivers from all contractors and subs being paid in the current draw. For final payment, they want unconditional waivers.

The lien waiver requirement is not optional. A draw without waivers will sit in review until they arrive.

5. Inspection Report (if required)

Many lenders require a third-party inspection before funding each draw. The inspector verifies that work billed is actually complete in the field. If your lender requires this, the draw shouldn't even be submitted until the inspection is done and the report is attached.

6. Change Order Documentation

If the G702 reflects an adjusted contract value, there needs to be an approved change order on file for every adjustment. Lenders cross-check the current contract value against their records. Discrepancies pause the draw.

What Slows Lenders Down

Based on what we see on DrawStack, the most common reasons draws get delayed:

1. Invoices missing or not attached — by far the most common issue

2. Lien waivers missing for one or more subs

3. G703 totals don't add up — math errors or copy-paste mistakes from prior draws

4. Invoice amounts don't reconcile to SOV line items — slight discrepancies that require back-and-forth to resolve

5. Change orders not on file — billing against a revised contract value without documentation

Every one of these is preventable.

How to Submit a Draw That Gets Funded Fast

Complete the package before you submit. Check off each component before it goes to the lender. A complete package on first submission almost always funds faster than a partial package with follow-ups.

Make the math obvious. Don't make lenders do the reconciliation manually. If your G703 shows $45,000 billed for framing this draw, your invoice from the framing contractor should show $45,000. If it's close but not exact, explain it.

Track lien waivers proactively. Don't chase waivers after you submit. Chase them before. Build the collection into your process — send waiver requests when you issue payment, not when you're trying to close a draw.

Use software that generates compliant forms. DrawStack generates AIA-compliant G702/G703 PDFs directly from your SOV. No manual entry, no formatting issues, no math errors.

The Lender's Goal

Lenders aren't trying to be difficult. They have a fiduciary obligation to verify that money is being disbursed for work that's actually been done. When the package is complete and the numbers tell a clear story, they can review and approve quickly.

The faster you make their job, the faster you get paid.

Start submitting complete draw packages with DrawStack →