Construction draws checked line by line against the budget and the site before any money moves.
Bluegrass builds draw review systems for construction lenders and the CRE groups of banks. Each draw is checked against the budget, the inspector's report, invoices and lien waivers, and exceptions are listed for the draw administrator before funds are released.
Every draw puts more money into an unfinished building, so a missed overrun, a missing lien waiver or a line funded ahead of the work is how construction loans go wrong.
What draw review involves today
Each month the borrower submits a draw request, usually on AIA G702 and G703 forms, with invoices and lien waivers. The draw administrator reconciles it against the budget, the inspector's report, prior draws and retainage, then recommends what to fund.
Packages run to hundreds of pages, so draw teams grow with the construction book or fall behind it. Because each check can be stated as a rule, AI can prepare the review while a person decides what to fund.
How automated draw review works
- 01
Read the package
The request, invoices, lien waivers, change orders and the inspector's report are read and matched to the project and the budget line each relates to.
- 02
Reconcile against the budget
Each line is checked against the budget, prior draws, approved change orders and retainage, and any line that would exceed its budget or be funded ahead of the inspection is flagged.
- 03
Check the waivers
Conditional and unconditional lien waivers are matched to prior payments and to this draw's payees, and any that are missing, unsigned or for the wrong amount are listed.
- 04
Test the balance
The cost to complete is compared with the remaining budget, contingency and any required equity, so a loan out of balance shows up before the draw is funded.
- 05
Recommend and record
A summary with the recommended amount and every exception goes to the draw administrator, and the decision, its conditions and the supporting documents are filed to the loan.
Where people stay in the loop
Your draw administrator and loan officer decide every draw, including any line held back or funded with conditions. The checks are first tested on your past draws, including those where problems were found.
The systems it works with
The system works with your construction loan platform or spreadsheets, your inspector's reports, the portal or inbox where borrowers submit draws and the servicing system that releases funds.
When to build it, and when to buy it
Several construction loan administration platforms now automate parts of draw review, and a lender with a standard program and a platform it likes may need little more.
A custom build makes sense when borrowers won't use a portal, when your checks go beyond a platform's, or when underwriting, closing and monitoring should share one reading of the documents.
We hold no reseller agreements, partner quotas or revenue share with any vendor, so a recommendation to buy is made on its merits.
What this work costs you today
A quick way to put a number on the problem before talking to anyone, using your own figures rather than ours.
Enter your volume and the minutes each one takes to see what the work costs in a year.
The numbers stay in your browser and are not stored or sent anywhere. Bring the figure to the first call, since it is the baseline any system should be measured against.
Questions about construction draw review
- Does it replace the site inspection?
- Inspections stay with your inspector. The system reads the inspector's report and compares it line by line with the request, which is where most discrepancies are found.
- Can it read the forms and lien waivers we receive?
- It reads AIA G702 and G703 forms and each state's statutory and other lien waiver forms, along with invoices and change orders in whatever format they arrive.
- Who approves the draw?
- Your draw administrator and loan officer, as today. The system prepares the reconciliation and the exceptions, and nothing is funded without a person's approval.
Related systems
A senior team that has done this before
We are a small, entirely senior team with fifty years of combined AI engineering, multiple granted patents and Y Combinator founders, from Yale, MIT, McKinsey, Goldman Sachs, Microsoft and Vista Equity Partners. The people who scope your work are the people who write the code.
Selected work
We built the AI transformation roadmap for a top-50 P&C brokerage, and it is saving the firm millions of dollars in vendor fees it did not need to pay.
Clients include some of the largest banks, RIAs, fintechs and AI labs, as well as a top-3 P&C carrier, a top-10 P&C brokerage, a top-5 trucking brokerage, a leading specialty MGA and a leading trucking MGA.
We run only 3 to 5 engagements at a time, so that every client works directly with the senior team.
About the team- Dozens
- of insurance companies, RIAs, banks and fintechs we have worked with
- 50 yrs
- combined AI engineering experience
- 10+ Patents
- granted to members of the team
- 100%
- of the IP we build is assigned to you
Find out whether this is worth building for your business.
A 30-minute call with an engineer usually shows whether this is worth building. Within a week you will have a free written point of view, including whether a packaged product would serve you better.