Keeping track of your construction loan payments without losing your mind

I’m with you on not paying until I see the breakdown... learned that the hard way with some “miscellaneous” charges that were basically coffee runs.

Yeah, the “miscellaneous” line item is where budgets go to die. I always tell folks - if you can’t point to it on site, don’t pay for it yet. Photos are great, but I’d add: keep a running spreadsheet too. It’s not glamorous, but when someone tries to sneak in a $200 “site cleanup” that’s just sweeping up sawdust, you’ll catch it. And finishes? They’re like gremlins - double overnight if you’re not watching.

if you can’t point to it on site, don’t pay for it yet

I get the logic, but sometimes that approach can slow things down more than it helps. There are legit costs that aren’t always visible - like permit fees or off-site fabrication. I’d say, ask for documentation, not just physical proof. A spreadsheet’s good, but cross-checking with invoices and contracts is what really keeps everyone honest. And about finishes... agreed, they’re sneaky, but a detailed spec sheet upfront can save a lot of headaches later.

Title: Keeping track of your construction loan payments without losing your mind

I hear you on the "if it’s not on site, don’t pay" rule, but sometimes that’s just not practical. Like, how do you handle when the millwork is being built off-site? Or when the city wants their permit fee upfront but you won’t see a thing for weeks? I always ask for backup - quotes, receipts, whatever - but even then, some stuff slips through the cracks. Ever had a sub try to bill for materials that haven’t even shipped yet? That one gets me every time...

Ever had a sub try to bill for materials that haven’t even shipped yet? That one gets me every time...

Yeah, that’s a classic. I get why subs want to lock in payment for big-ticket items, especially with lead times being all over the place, but it’s risky on our end. For off-site stuff like millwork, I’ve started asking for photos of progress or even FaceTime walkthroughs - doesn’t solve everything, but it helps. Permit fees are just a sunk cost, unfortunately. Ever tried using a draw schedule that breaks out off-site fabrication separately? It’s not perfect, but it gives a bit more control.

Title: Keeping track of your construction loan payments without losing your mind

Had a GC try to get me to sign off on a six-figure cabinetry payment once - nothing even on the truck yet, just “trust us, it’s coming.” I get nervous every time I see a front-loaded invoice. I started doing site visits for anything custom (sometimes they hate it, but tough luck). Photos are good, but I swear some folks are getting creative with their angles... The draw schedule split for off-site stuff is smart, though. Keeps everyone a little more honest, or at least gives you something to point at when they start pushing.