Part 2: FHA 203k Consultant Guide — Draw Inspections, Change Orders & Project Completion
Now that you understand feasibility, scope writing, and budgeting, Part 2 covers the phases that keep a renovation on track after the project moves forward: bids, inspections, documentation, and closeout.
Step-by-Step Process (Part 2)
4. Contractor Selection Support (and Bid Review)
A common reason 203k projects stall is contractor confusion—especially around documentation, timelines, and how draw payments work.
A 203k consultant helps by:
Reviewing contractor bids for completeness
Confirming the bid matches the written scope
Flagging missing line items or unrealistic pricing
Reducing “low-bid then change-order” problems
Why it matters: The right bid and contractor alignment early prevents major project breakdowns later.
5. Draw Inspections and Progress Verification
During construction, the consultant performs draw inspections to confirm work is completed before funds are released.
This typically includes:
On-site progress checks
Photo documentation
Verification that work matches the approved scope
Reporting for lender disbursement
Why it matters: It keeps payments tied to completed work—not promises—and protects both borrower and lender.
6. Change Orders (When the Project Changes)
Most renovations evolve. Unexpected conditions can require changes in scope, cost, or timeline. A strong change order process keeps everything clean and approved.
Consultants support this by:
Clearly documenting what changed and why
Showing cost/time impact
Helping ensure lender approval before moving forward
Why it matters: Unapproved changes can derail funding, timelines, and even loan compliance.
7. Final Inspection and Project Completion
At the end of the renovation, the consultant verifies completion according to the approved plan.
This may include:
Final walk-through
Confirming required repairs are done
Ensuring the home meets safety expectations
Supporting final escrow/disbursement steps
Why it matters: Clean closeout prevents disputes and ensures the rehab portion of the loan wraps up successfully.
Best Practices: Organization Wins Every Time
Top-performing consultants rely on consistent organization:
Standard file naming for every project
Phase checklists (scope → bids → draws → closeout)
Email templates for borrower/lender/contractor communication
A spreadsheet tracking budget and contingency usage
Cloud storage (Google Drive/Dropbox) for fast access
Need expert guidance for your FHA 203k renovation project?
Schedule a 203k consultation with PPT Inspections to get a clear scope of work, accurate estimates, and professional draw inspection support.
HEY, I'M WALTER L. WILLIAMS
Walter L. Williams was born and raised in the City of Detroit. He has two associate degrees, one in Applied Science Architectural Building Construction Technology from Schoolcraft Collage and an Associate of Arts in Liberal Arts from Henry Ford Collage.
Walter has been in the Building Services business for over 30 years as an Architectural Draftsperson working for Detroit Water and Sewerage, City Engineering Department and his current companies, People, Places & Things LLC, Residential Design and Space Planning, PPT Inspections, Home and Building Inspections, My Rehab Consultant, FHA HUD 203K Consultant and one of the founders of New Decade - New Home Educational.
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