Good Afternoon, I was seeing if you guys do Draw Inspections for banks, and if you give a report from your software, or if they just want some pictures and a quick write up…
also seeing what you guys charge for a draw inspection. For reference I’m in MN
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Do you understand what a Draw Inspection is?
Your comment(s) indicate you do not.
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JJ, I’m sure there are many inspectors that are not familiar with what “draw inspections” are. There are many that do, especially for ones that have building and construction backgrounds.
Not to undermine the OP’s post, but for those who are not familiar with the process, simply put;
A builder will have a construction loan with a bank for a new build for $350K
The builder will request a “draw” from the loan to excavate the lot, pour the foundation and do the initial frame out of the house.
The phase “inspector” will represent the bank and verify all phases related to the builders’ draw has been completed before the builder can make another draw against the loan. Checks and balances.
When I was building back in the early 2000’s, the bank usually sent out an employee within to check. They usually did a look see and said all was completed from the previous draw and all was OK.
Things may have changed since then, but I thought I would share for newer inspectors on what the “draw” inspections are about.
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I understand what a Draw inspection is, and why a bank will request it. I have not done one in the past, and have not seen a finished report on a draw inspection. Seeing what a normal charge would be for a Draw inspection.
thanks for info.
Ask the bank. They may have their own check form. Depending on what they want sent, set your price accordingly. Distance, #of pics, verbiage if written report if requested. My past experience with a bank inspector was less than 15 minutes on site with a clip board and check list. My guess was the guy was at $15 an hour… bank employee.
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How far do you have to drive? What kind of form do you have to fill out? How many photos do you need to take and how are they presented to the bank? What’s your hourly rate, including overhead and vehicle costs?
I’ve had numerous calls about draw inspections, and I’m in MN too. Typically they are willing to pay $50 to $75. I recall one paying that range, and the project was 30 miles away. Add 1.5 to 2 hours for prep, travel, do the photos, fill in the forms, send them off, plus vehicle mileage. Do the math. You’re better off working at the local convenience store.
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50 miles to get there. I’m waiting on the bank to see how detailed of a report they need.
$250 absolute minimum.
Edit: 100 miles at $0.69 (IRS rate), 2 hours travel, 1 hour prep + photos + forms = 3 hours @ $60/hr…
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Thanks Michael.
FYI your living in God’s country up north! wish I was farther up north.
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At least in my experience, the company requesting the draw inspection will tell you the fee they are offering. There may be a little wiggle room if they are having trouble finding someone to do it. Typically, you will not be writing a report. You will be filling out their form and adding pictures of what they want. It is very easy work, but also tends to not pay much.
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Figured it is something I could do with my back still healing up.
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Easily. It requires no physical effort really. Make sure you bring a hard hat with. Most construction sites you cannot (technically) be on without one.
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I’ve performed them for a few different companies. Each one has their own template and way of uploading photos. I’m not sure if there is any inspection that has the greater variance in pay as draw inspections. I have done many that have paid between $550.00-$650.00. The other day I was offered $35.00 to perform one. When I told her that it would require a 3 1/2 hour round trip, she offered to bump it up to $60.00. I did not take her up on her offer.
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The offers I get in Cali are $250-$350. Sometimes the expectations are really low just pictures.
They troll the Nachi database for someone close, to minimize drive time probably.
It’s always been an offer, not a request for a price.
If it’s 50 miles why not track down a closer inspector or landscape photographer and refer the job to them?
I think some of the confusion here is that some of you guys are interchanging the terms draw inspection and phase inspection. They are definitely not the same thing.
A draw inspection may pay $35 -$50 ish and only require you to drive by and snap 30 pictures of the worksite to verify that a certain amount of activity has occurred.
A phase inspection is an actual inspection of the work that has been done so you should charge accordingly.
I just picked up a commercial lender last week because the last guy they hired did a draw inspection when they wanted a phase inspection. I’m their go-to-guy now because I knew the difference.
What are Draw Inspections?
In a construction draw inspection, the lender hires an inspector to visit the construction site and assess progress. The inspector is looking to show where the project is in relation to the timeline that was set out, checking the accuracy compared to the original draw request, and reviewing the budget. They’re also likely to look at any stored materials kept on the site.
A construction lending best practice used by most lenders is ordering draw inspections to validate progress in conjunction with disbursing funds. The simplest reason for draw inspections is to follow along with the builder so that both the project owner and the lender can ensure the loan proceeds are going into the collateral on the loan, and to identify progress concerns as early as possible. Draw Inspections | What Are Draw Inspections & Why Are They Important? (mcsteen.com)
What are New Construction Phases Inspections?
When constructing a new building, every inch of the property must be inspected to ensure the building meets health, safety and structural standards. Unfortunately, many builders cut corners, leading to dissatisfied buyers and buildings with serious issues. These issues can cost thousands to repair, especially in major components like the framing, foundation, plumbing, electrical, and HVAC systems.
New construction phase inspections ensure a building is being constructed properly every step of the way. Buyers will receive a detailed explanation of the state of construction of the property, what items have been satisfactorily completed, and any issues that may have appeared. Furthermore, these inspections alert builders to issues they didn’t know were present and hold them accountable for any cut corners. It’s a win/win for every party involved. Everything You Need to Know About New Construction Phases Inspections (inspectify.com)
JJ was right, if you are using report software for a draw inspection, you are doing it wrong. I’d argue that if you are doing draw inspections, you are scraping the bottom of the barrel. I understand you gotta do what you gotta do to put food on the table. Maybe upsell them to a phase inspection? Good luck.
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I do draw inspections for banks all the time. I don’t know about pricing in MN but in FL they pay anywhere between $85.00 and $120.00. Each bank has their own pricing and the max they will pay, just ask them. They usually have their own form that they want filled out. The time it takes to do one depends on the size of the property but all you are doing is taking photos and checking the boxes and adding % complete for each item.
Good luck.
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What is your average time including travel for those?
I used to get requests from lenders to do some verification inspections. They paid squat and after doing one to see what it was, I realized I was paid around the minimum state wage at that time. No more for me.
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15 to 20 minutes. everything done with phone, take photos fill in form and send.
With drive time? Good deal.
Typically, what is your mileage?
- Round trip mileage x $0.69/mile = ???
Typically, what is your total time?
- Total time = prep time + travel time x 2 ways + time on site + time it takes to send out the forms.
What is your net hourly pay, less vehicle mileage, using my definition of total time?
I revised my post above based on the OP information including 50 miles one way travel and $250 is still my minimum for his job.
Using the OP 50 miles and your 20 minutes total time, my minimum still is over $200…
For me, the pay scale for these draw inspections doesn’t compute. Same for new insurance inspections, another option I was asked about. I’m much better off doing other independent work during slack times.
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