Construction draw management that proves every line before money moves
Draws funded in a day, not a week, every line tied to its invoice, waivers and inspection.
See one case, screen by screen ↓Software that takes a construction loan draw from the borrower's request to a funded advance: the pay application, invoices, lien waivers, inspection, budget and title date-down checked before money moves. Construction Draw Management adds six agents that read the whole package, tie every G703 line to its proof and recommend an amount with each holdback, for the loan administrator to decide and sign.
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Every draw has to be proven before it is funded: the contractor's AIA G702 and its G703 continuation sheet, every subcontractor's invoice, a conditional lien waiver for this payment and an unconditional one for the last, the inspector's percent complete, the budget and change orders, and the title company's date-down. The construction loan administrator assembles that proof by hand, in spreadsheets and email, while the contractor and its subs wait for cash.
The risk sits in the lines nobody had time to check. A G703 that does not tie to the G702, framing billed ahead of what the inspector saw, a sub paid again before last month's payment is proven received, a waiver that is short of the payment or not on the state's statutory form — in Texas such a waiver is unenforceable. Funding a line ahead of the site, or paying without a valid waiver, is how a lender loses money and lien priority.
Estimated split for a typical draw on a mid-size construction loan, by hand and with the solution.
Six specialist agents tie every line to its invoice, waivers and inspection; the loan administrator decides and signs.
Larkspur Commons — a mixed-use project in Austin, 186 units over 14,200 sq ft of retail — sends Draw 14 for $4,384,970. Here is what happens next, screen by screen, in the working solution.
Marisol runs 23 active construction loans, $412.6M committed. Her home screen shows 8 draws in the queue for $12.4M, the oldest waiting 10 days on 3 missing waivers, and 7 open exceptions. The agents have already found a lien affidavit on Pecan Row and an out-of-balance loan on Bluffview Lofts.
Agents at work: “Title date-down checker — Pecan Row · lien affidavit found, $48,200 · borrower asked to bond around it.”
Each draw shows what was requested, when it was received, its documents, inspection, waivers, exceptions and stage. Larkspur Commons Draw 14 from Ironbridge Builders has 51 of 51 documents in and 27 of 28 waivers, and is ready for review.
“The contractor's clock starts when the package is complete.”
The pay application reader checks the G702 and G703: 20 lines, contract sum to date $50,048,900, the G703 ties to G702 line 4, retainage 10%. The invoice and waiver matcher ties 13 invoices and 27 waivers. The inspection reconciler compares Dale Whitcomb's report, the budget and balance checker runs the in-balance tests, and the title date-down checker reads Fairhaven's search to 9 Oct.
Every step is shown as it runs, with what it found.
Twenty of 20 lines tied to their proof. Four exceptions, $782,750 held: framing billed ahead of the inspection, Brightline Electric's missing unconditional waiver for Draw 13, change order 8 not yet approved by the bank, and Pedernal Plumbing's conditional waiver $20,000 short. Each links to the page it came from. Recommended: $3,602,220.
“Recommended $3,602,220 · Funding recommender · needs a second signature.”
The G703 bills wood framing, Westfall Framing's line, to 88% ($6,116,000 of $6,950,000). The inspector certifies 81%: on Level 5 the east wing walls are framed but not sheathed and the roof trusses are on site, not set. The $486,500 billed ahead of the site is held — $437,850 net of retainage — until a later inspection certifies it. Every other line is within the 3-point tolerance, and the 212 stored windows are counted on site.
The inspection reconciler never changes a percentage the inspector certified.
Every waiver is read for its type, amount, through date, signer and Texas statutory form. Brightline Electric's unconditional waiver for the $241,650 paid in Draw 13 has not arrived, so its $257,760 due this period, net of retainage, is held. Pedernal Plumbing's conditional waiver releases $176,605 against $196,605 due, so the $20,000 difference is held. One click asks Ironbridge for the 2 waivers.
“Rule: no new money to a party until its unconditional waiver for the last payment is in.”
After the draw the undisbursed loan of $28,452,720 covers the cost to complete. Contingency after change order 8 would be $1,663,500 — 8.2% of the work left, above the 5% minimum. General conditions are 3.3 points ahead of the project, inside the 10-point limit. One to watch: the interest reserve has $1,157,600 left against $1,094,000 projected to mid-June 2027.
Hard costs of $3,992,730 after retainage plus $392,240 of soft costs make the $4,384,970 request. Four holds come off, each with the document that releases it, leaving $3,602,220 to fund through Fairhaven Title & Escrow, which issues the ALTA 33-06 date-down for the advance. The notice to the borrower is drafted and sent only when she signs.
The inspector's report also notes three storefront units in retail bay C installed with cracked panes, at about $25,000 to replace. Marisol asks the assistant to hold it. A fifth holdback appears, released when the inspector confirms the units are replaced: fund $3,577,220, hold $807,750.
Activity: “Funding recommender added a $25,000 holdback for cracked storefront glass, retail bay C.”
Marisol approves with the meaning of her signature — “Reviewed — fund as recommended”. The draw is above her $2,500,000 limit, so it goes to Grant Ellison, SVP construction lending, for a second signature before it is funded. Once he co-signs, $3,577,220 goes to Fairhaven Title for disbursement — one business day after the package was complete.
“Your signature, the time, the amount and every holdback are written to the audit trail and cannot be changed.”
The same draw, seen by the four people who carry it — what their month looked like, and what it looks like now.
Six specialist agents tie every line to its invoice, waivers and inspection; the loan administrator decides and signs.
Reads the AIA G702 and G703 — or the lender's own form — recomputes every column and checks that the continuation sheet ties to the summary, that change orders billed are approved and that retainage matches the loan agreement.
Ties every subcontractor invoice to its G703 line, and reads each waiver's type, amount, through date, signer and statutory form — the conditional waiver for this payment and the unconditional one for the last.
Compares the inspector's percent complete and stored-materials count with what is billed, line by line, and holds lines beyond the tolerance at the difference, net of retainage.
Tests the budget lines, change orders, contingency, interest reserve and the in-balance requirement after the draw.
Reads the title company's date-down for liens, judgments and notices recorded since the last draw.
Turns the findings into a recommended amount, a holdback for each exception with the document that releases it, routes above the administrator's limit to a second signer and drafts the notice to the borrower.
Decides and signs; officer co-signs above the limit. The agents propose; a named person decides.
Ask about any draw, line, waiver or test — or say what to hold. Every answer points to its source.
Why is the framing line held back?
Ironbridge billed wood framing to 88% — $6,116,000 of $6,950,000, with $973,000 this period. Dale Whitcomb's inspection on 8 Oct certifies 81%: on Level 5 the east wing walls are framed but not sheathed and its roof trusses are on site, not set. The $486,500 billed ahead of the site is held — $437,850 after retainage — until a later inspection certifies it.
Which subcontractors are missing lien waivers?
Two of the 14 parties are holding money: Brightline Electric, whose unconditional waiver for the $241,650 paid in Draw 13 has not been received ($257,760 held), and Pedernal Plumbing, whose conditional waiver for Draw 14 reads $176,605 against $196,605 due ($20,000 held). The other 26 waivers are on the Texas statutory forms and match.
Is Larkspur Commons still in balance after this draw?
Yes. After funding, the undisbursed loan covers the cost to complete. Approving change order 8 takes contingency to $1,663,500 — 8.2% of the $20,362,340 still to build, above the 5% minimum. One to watch: the interest reserve has $1,157,600 left against $1,094,000 projected to mid-June 2027.
Hold $25,000 for the cracked storefront glass in retail bay C
Added. The inspector found three storefront units with cracked panes in retail bay C and put the replacement at about $25,000. The recommendation is now $3,577,220, with $807,750 held in 5 holdbacks. It releases when the inspector confirms the units are replaced.
13 screens from the working solution, on its sample data. Pick one to see it large.
The rules every draw is checked against are settings, versioned and on the audit trail.
| Setting | Default | Choose from |
|---|---|---|
| Inspector variance tolerance | 3 points | Step up or down, one point at a time |
| General conditions ahead of the project | 10 points | 5 · 10 · 15 points |
| Retainage | 10% throughout | 10% throughout · 10% to 50% complete, then 5% · 5% throughout |
| Minimum contingency | 5% of remaining hard cost | 3% · 5% · 7.5% of remaining hard cost |
| Waiver forms | Texas statutory forms (§53.284) | Texas (§53.284) · California (§§8132–8138) · Arizona (§33-1008) |
| Stored materials | On site or bonded warehouse | On site or bonded warehouse · On site only · Not funded until installed |
| Change orders the bank must approve | Above $100,000 or 25 days | Above $100,000 or 25 days · Above $50,000 · Every change order |
| Construction loan administrator signs alone up to | $2,500,000 | $1,000,000 · $2,500,000 · $5,000,000 |
Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.
“demo” = seen in the working solution, on its sample loan data · “target” = the design goal, measured in the live solution · “estimated” = our estimate · “typical” = published figures (Rabbet construction loan administration survey — 5.5 business days lender-reported, 9.4 borrower-experienced; Land Gorilla — 5–7 days by hand; MightyBot on G703 lines that do not tie to the G702; Tex. Prop. Code §§53.281–53.284 on statutory waiver forms). People, companies, projects and addresses named on this page are fictional — characters and sample data in the working solution.
Software that takes a construction loan draw from the borrower's request to a funded advance: the pay application, invoices, lien waivers, inspection, budget and title date-down checked before money moves. Construction Draw Management adds six agents that read the whole package, tie every G703 line to its proof and recommend an amount with each holdback, for the loan administrator to decide and sign.
The invoice and waiver matcher reads every waiver's type, amount, through date, signer and statutory form, for this payment and the last. A missing unconditional waiver for the last payment holds the party's new money, and a waiver short of the payment due is held at the difference. One click drafts the request to the contractor.
The inspection reconciler compares the inspector's certified percent with the billed percent on every G703 line. A line further ahead than the tolerance — 3 points by default — is held at the difference, net of retainage, and released when a later inspection certifies the work.
Yes. After each draw the budget and balance checker tests that undisbursed loan funds cover the cost to complete by budget line, that contingency stays above the minimum share of remaining hard cost, that general conditions are not ahead of the project and that the interest reserve runs to completion. Out of balance stops the recommendation.
No. The agents report differences; they never alter a submitted figure or a certified percentage, never move money between budget lines and never recommend funding past a recorded lien.
Yes. The agents recommend and never approve or move money. The construction loan administrator decides and signs with the meaning of the signature, a construction lending officer co-signs above the administrator's limit, and every holdback is released only by its document or with a reason and a second person.
Yes. The inspector tolerance, general conditions limit, retainage, minimum contingency, statutory waiver forms by state, lower-tier supplier threshold, stored-materials rule, change-order limit and approval limits are all settings, versioned and on the audit trail.
The Agentic Solution Engine builds and deploys it from your requirements and documents — your credit policy, loan agreement and a sample of past draw packages — and it goes live once every quality gate has passed. We will walk you through it on your own draws first.
Eighteen months of maturities ranked by refinance gap, evidence attached.
1-min demoRent Roll & Operating Statement AnalysisNo re-keying, and every rent checked against its lease.
1-min demoCommercial Appraisal ReviewWeak comps and unsupported values flagged before the reviewer signs.
1-min demoWe'll run Construction Draw Management on a sample of your own past draw packages.