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  1. #1
    Join Date
    May 2010
    Location
    Durant, OK
    Posts
    117

    Default Construction Phase Inspections

    I have been approached by a local bank to begin doing Construction Phase Inspections for their Construction Loans. For the past 3 years I have only done Pre-listing and Pre-Purchase Home Inspections with a few Builder Warranty Inspections thrown in here and there.Does anyone have a link to some good reporting forms or checklists that I can use? The phases I will be inspecting are:

    l


    Grading
    Footings
    Pre-Foundation Forms
    Pre-Backfill
    Foundation Walls
    Framing
    Pre-Insulation
    Pre-Drywall
    Pre-Final
    Landscaping
    Final

    Any help or advice would be appreciated.

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  2. #2
    Bob Spermo's Avatar
    Bob Spermo Guest

    Default Re: Construction Phase Inspections

    Dub,

    I have done a lot of phase inspections but I will not do the foundation/slab inspection. All of the slabs in my area are engineered and the engineering firm does the inspection and acquires all of the liability. I will measure from the forms to verify that the plumbing is in the correct spot (if the forms are!) and electrical conduits are installed if required.

    I use Whisper Solutions for my reports and the program allowed me to create my own phase inspection forms. I have also added the 2006 and 2009 IRC to my notes because it is a code inspection! Builders like it when I quote the code issue - they make the sub fix it!

    Good luck - phase inspections really are a different breed from the existing house inspection.


  3. #3
    Join Date
    Mar 2007
    Location
    Spring Hill (Nashville), TN
    Posts
    5,847

    Default Re: Construction Phase Inspections

    Quote Originally Posted by Dub Smith View Post
    I have been approached by a local bank to begin doing Construction Phase Inspections for their Construction Loans. For the past 3 years I have only done Pre-listing and Pre-Purchase Home Inspections with a few Builder Warranty Inspections thrown in here and there.Does anyone have a link to some good reporting forms or checklists that I can use? The phases I will be inspecting are:

    Grading
    Footings
    Pre-Foundation Forms
    Pre-Backfill
    Foundation Walls
    Framing
    Pre-Insulation
    Pre-Drywall
    Pre-Final
    Landscaping
    Final

    Any help or advice would be appreciated.
    I'm betting that the bank is talking about "Draw" inspections. One way to keep them straight is that a Draw is for quantity and a Phase is for quality.

    Generally the banks really do not care that much about the quality of the build, this is what the AHJ is for. Their main concern is not advancing more money than needed based on the percent of completion.

    With a draw inspection you are looking at what has been completed verses what the builder is requesting. You then take that % of completion and estimate how much of the home is complete based on what is still remaining. To give you an idea; a home that is framed and dried in (roof, windows and exterior doors) is around 30% to 35% complete. Rough-In's for plumbing and electrical will add another 10% to 15%.

    I don't know of any site that will give you or tell you what you need to do for a draw inspection. The bank will most likely have a form or they might provide you an old report that you can go off of.

    With my banks I give them a line item report with a few documentation photos of the progress and then I provide them with the dollar amount used and the dollar amount remaining and a recommendation to pay or not to pay the requested amount. You are working for the bank and you are their eyes on the job site. The hard part is that the banks are really not interested in quality and you have to overlook things that you would not do in a normal home inspection. Now if it is a major problem that would cause a problem for the bank if the loan went bad I will let the bank know in my report.

    Once you get use to doing them you will be onsite for about 10-15 minutes and it will take about 15-30 minutes to type up the reports. Typical fee will be between $50 and $100 depending on the scope. Most require a monthly draw and I have done some as frequently as every week on problem loans.

    They are not difficult and can be very profitable if you work them smartly.

    Scott Patterson, ACI
    Spring Hill, TN
    www.traceinspections.com

  4. #4
    Join Date
    Mar 2007
    Location
    Philadelphia PA
    Posts
    3,177

    Default Re: Construction Phase Inspections

    If, in fact, the bank is talking about phase inspections and not draw, you might want to check with your E&O provider (assuming you are insured) regarding coverage.

    "There is no exception to the rule that every rule has an exception." -James Thurber, writer and cartoonist (1894-1961)
    www.ArnoldHomeInspections.com

  5. #5
    Bob Spermo's Avatar
    Bob Spermo Guest

    Default Re: Construction Phase Inspections

    Scott,

    Over the last year I have done phase inspections (not draw inspections) for two mortgage lenders. I think they have finally figured out they need to protect their investment!

    You do have to check with your insurance provider to see if you are covered for new constructions inspections.


  6. #6
    Join Date
    May 2010
    Location
    Durant, OK
    Posts
    117

    Default Re: Construction Phase Inspections

    Scott, you may be right, it may be "Draw" inspections. Thanks for clearing up the difference. Thanks Bob for your tip, I'll look into it. I should know more when I meet with the Bank Committee tomorrow to discuss the requirements. I will also ask for an old report and see if they use a form of their own.

    Thanks to everyone for the advice..keep it coming if you have any insight you want to share!

    An ounce of prevention is worth a pound of cure
    Jubilee Home Inspections

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