Construction Fund Control and Disbursement
Application for Payment Analysis

This review provides the Lender with an analysis of the Contractor’s Application for Payment. OCC Handbook on Commercial Real Estate Lending indicates that controls should include inspection processes, documentation of construction progress, and exception monitoring and reporting. This is to be performed so that the amount of each construction draw is commensurate with the improvements made as of the date of the inspection. The construction draw backup should include a construction draw request form, a borrower certification, lien waivers from sub-contractors and suppliers. Bold Control independently gathers all construction draw related documents and, upon approval of funding from the Bank, acts as the voucher for the Lender for all payments made to the Contractor or Borrower. Reviews include but are not limited to:

  • Application for Payment review

  • Review of the project budget for any changes

  • Review change orders for proper approval

  • Review change orders for completion

  • Review Engineering and City inspection reports

  • Collect and review invoices

  • Collect and review preliminary lien notices

  • Collect and review conditional lien releases

  • Collect and review unconditional lien releases

  • Collect and review W-9 information

  • Prepare checks for vendors

  • Track 1099 forms for IRS reporting

  • Monitor vendors paid on the job