Adding a new solution to your flow at work can take some getting used to. Contract Simply is here to help make sure you are equipped to best use our construction loan software.
Below are some definitions of commonly used industry terms that are also used in our platform, as well as the types of users (roles) on our platform and the workflows they will encounter.
Construction Loan Participants
Bank or Credit Union: refers to the institution lending the money for the construction loan.
Borrower: the person or organization that is receiving the loan from the bank or credit union in order to fund the construction
Contractor (General Contractor): manages the day-to-day aspects of actually completing construction, creates Scopes of Work, packages draws to send to the bank, releases funds to subcontractors.
Inspector: a person who verifies that the work the contractor says has been completed has actually been completed. This person sends the inspection documents to the bank and verifies that the work in a specific draw is actually complete.
Subcontractor: the entity or person performing work on project, hired by the general contractor.
Budget: (aka estimate, scope of work, schedule of values, contract) a list of project costs that all parties involved have agreed to as the original contract sum.
Conditional Lien Waiver and Release: signed by the subcontractor or general contractor as an invoice is submitted; the claimant has not yet been paid, but will be paid out of a progress payment that is not the final payment.
Unconditional Lien Waiver and Release: signed by the subcontractor or general contractor as a payment is claimed; states they have received payment and waive their lien right to the borrower’s property.
Invoice: submitted by subcontractors and general contractors, this documents what work has been done and the amount owed for that work.
Draw: collection of invoices submitted by the general contractor to the bank for approval and funding.
If you have any questions, please email us at firstname.lastname@example.org or give us a call at 1-833-4SIMPLY.