· 1st Draw – Consultant insures permits were issued.
· 2nd and 3rd Draw – Draw request inspections are performed as work progresses.
· 4th Draw – A punch list is established
· 5th Draw – The project is closed out and warranties and lien releases collected.
When travel distance exceeds 15 miles round trip from the reviewer’s place of business, a mileage charge (established by HUD Field Office) may be applied to the above charges, including toll road and other charges where applicable. Mileage in excess of 15 miles round trip per inspection, shall be payable at the rate of $.53 per mile plus tolls if applicable and invoiced and paid from escrow.
A 10% hold back is taken from each draw to ensure there are funds at the end of the project to use should they be needed. If they are not needed then they are paid with the 5th draw. This is separate of the contingency fund which we will discuss in a moment.