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Builder Took Final Draw

WisconsinPay Applications
Anonymous Contractor

Can a builder take the final draw from the bank without the clients approval? Even though the client HAS NOT approved the final inspection and work is not complete?

1 reply

Levelset Admin at Levelset
| 1,003 reviews
Feb 24, 2020
Generally, a bank shouldn't approve a final draw unless all of the correct documentation is in order. That'd likely include project closeout documents like inspections, approvals, certifications, etc. And, a builder likely shouldn't request a final draw until the time has come to do so. With that being said, it's possible a builder might request a draw a bit early. And, it's also possible that the lender might release the draw - even if that's done in error. If full payment has been released and there's still work to be done, it'd be wise to contact the contractor and make sure there's a concrete plan in place to make sure the remaining work is finished.
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