When you think of the roles Title Companies play, construction draws don’t typically rank high on the list as part of their processes and responsibilities. However, for Title companies who operate in the construction disbursements space, construction draw management software can provide a massive efficiency boost.
Construction draws and disbursements processes can be incredibly inefficient and frustrating not only for the Title Company, but for their clients as well. Lenders and Builder/Borrowers can attest to clunky, error-prone workflows that result in endless back-and-forth emails, document searches, and spreadsheet-sharing headaches.
The right construction draw software helps Title Companies improve their own internal workflows without increasing overhead and make their customers happy by keeping projects moving smoothly.
Draw software helps Title Companies in the following ways:
- Reducing Draw Turnaround Time: Title companies can automate certain tasks and streamline their own internal workflows. This includes managing draw requests, reviewing documentation, tracking disbursements, and ultimately providing a quick, accurate recommendation to the Lender. Automated processes reduce manual errors caused by manual entry and improve overall efficiency. Projects run smoothly and stay on schedule, benefitting everyone involved in the project.
- Facilitating Construction Disbursements. Construction draw software helps streamline the disbursements process by providing a centralized platform for managing and tracking requests and ensuring that funds are released at the appropriate stages of construction completion. Inspection reports should be included in draw requests in order for Title Companies to verify the completion of construction milestones before authorizing disbursements.
- Ensuring Accuracy and Security: Title companies use the inspection reports included in requests to verify the completion of specific construction phases and ensure compliance with loan agreements and contracts. This helps protect the interests of the Lender involved and minimizes the risk of fraudulent or unauthorized draw requests.
- Enhancing Project Visibility: Construction draw software provides insights and visibility for Lenders, Builders/Borrowers, and Title Companies. These tools facilitate the exchange of information, updates, and documentation like lien waivers, invoices, and other reports related to construction projects. Title companies can stay informed about the progress, address any concerns or issues, and maintain transparency throughout the construction draw process.
Drawn-out draw processes slow projects down and create potential for errors, and many Title Companies have yet to adopt a solution that helps them reduce inefficiencies within their own processes and organization. The right draw software not only helps them streamline their own workflows but helps projects run smoothly, keeping everyone involved in the project happy.