How a draw works
The borrower's draw request, often on AIA G702 and G703 forms, sets out work completed against each budget line, with invoices, change orders and lien waivers. Once the inspector confirms the percentage complete, the lender funds the approved amount less any retainage held back until completion.
Why lenders check so carefully
Each draw puts more money into an unfinished building. The lender must confirm that the billed work is done, that the remaining budget can finish the project and that contractors and suppliers are paid and will not file liens.
Where the work is
A draw package can run to hundreds of pages. Every month, for every project in the construction book, the draw administrator reconciles it line by line against the budget and matches every waiver to a payment.
Where automation helps
Automation reconciles each line of the package against the budget and inspection, matches waivers to payments and tests whether the loan remains in balance. Every exception goes to the draw administrator, who decides what to fund.