Draw schedule disputes with lenders — how do you handle them?

Liam, draw disputes are unfortunately common in construction lending. A few things: 1. The lender's inspector is the final word on completion percentage — that's in the loan docs. The builder's assessment doesn't override it. 2. Get the builder and inspector on a call together to walk through the discrepancy. Often it's a definitional issue (what counts as "complete") 3. If the inspector is wrong, you can request a re-inspection. If they're right, the builder needs to complete the work before getting the draw. 4. The builder threatening to walk is a negotiating tactic — in most cases they won't because they'd lose their contract and any money already owed. Document everything in writing.

From the lender side: we've seen builders inflate completion percentages to get draws early. Our inspectors are conservative for exactly this reason. Liam, the 70% vs 85% discrepancy is significant — I'd trust the inspector.

Thank you both — this is really helpful. I didn't realize the inspector's assessment was contractually final. Going to get everyone on a call tomorrow.

Welcome to construction lending. It's a different animal. The draw process is where most of the friction happens. Get comfortable with it or stick to bridge loans.