A Brief Review of QuickDraw’s Release Process
At QuickDraw Fund Control, one of the most important services we provide is processing releases. Because it’s such an important part of processing Draw Requests, we thought it’d be a good idea to share a review of QuickDraw’s release process. Take a look!
What is a release?
For those that are not familiar with them, there are four types of Waiver and Release forms and the most current releases can be found on the Contractor’s State License Board website. Conditional and Unconditional, Progress and Final Waiver and Release forms are designed to make sure that companies who are providing labor and construction materials are compensated accordingly. It shows that they have been paid or they will be paid. Ultimately, it protects both the borrower and the lender. Every invoice must have a properly executed release. This, along with other measures, helps ensure that claims for past payments won’t come back to haunt the Borrower and Lender later on.
At the beginning of any new project, we conduct a meeting to review the draw procedures. Within that meeting is a discussion about how we process releases. Then, there is a two-step process for any release completed with QuickDraw. First, we make sure that the release is the most current form, is properly filled out and signed either by hand or via electronic signature, like DocuSign.
Next, prior to approving the next draw request, we require an unconditional release or a canceled check that matches the prior conditional release. Both serve as proof of payment on the prior invoice.
This critical step reduces risk for both the borrower and lender.
By going through this detailed release processing procedure, the project, the lender’s loan proceeds, and the borrower are all well protected.
To learn more about how QuickDraw Fund Control handles draw requests and processes releases in a timely, yet thorough manner, contact us today. We offer all the fund control services you need for your construction loans.