Before the Next Construction Draw, Reconcile Remaining Costs and Available Funds

By Don McClain | Founder & Principal, Medro Advisors An undisbursed construction-loan balance does not establish how much money is available to complete every remaining obligation. Review eligible costs, draw conditions, unpaid completed work, retainage and future scope under the actual project documents. Include additional interest and other carrying costs if the completion date moves. Don McClain’s new review explains why exhausting contingency and restoring a reserve are separate funding decisions. Bring the revised scope, completion forecast and confirmed sources into the capital discussion before relying on the next draw. Financing remains subject to underwriting and approval.