Draw request disputes are a big dilemma for general contractors. Generally, when a contractor takes out a construction loan with the bank they enter into a draw schedule that provides the contractor progress payments. Avoiding draw request disputes is tantamount to not only completing a project on a timely basis, but also avoiding the unnecessary costs associated with delays such as more interest payments, loss of labor, remobilization costs and even failure to continue to fund the progress of the project.
Whenever you are negotiating your draw schedule with the lender, it is wise to invest in the services of an experienced attorney. Also, if you become involved in a draw request dispute with your lender, it is vital to contact an experienced construction law attorney to assist you in quickly resolving the dispute to minimize the costs associated with the bank’s failure to fund your project. Our firm is ready, willing and able to assist you with any issues you may have regarding a draw request dispute.