Each construction draw typically incurs an inspector fee ($800 to 2,500), a lender administrative fee ($250 to 750), and a title-update charge ($300 to 800). Total cost per draw runs $1,500 to 4,000 on mid-size projects. Projects with monthly draws over a 24-month build can spend $35,000 to 95,000 on draw administration alone.
Can draw frequency be reduced?
Some lenders allow bi-monthly or milestone-based draws to reduce cost. The trade-off is working-capital strain on the general contractor, who must bridge the longer interval. On large institutional projects, the draw schedule is usually monthly to keep contractor liens and lien-waiver tracking current.
What other costs layer on?
Construction inspector fees are passed through; some lenders mark them up. Stored-materials releases (paying for materials not yet installed) require additional bonding or insurance. Final draw and balloon-conversion typically carry a separate one-time fee of $2,500 to 7,500 for the lender's completion review.
Sources
- Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations · Mortgage Bankers Association · 2026-Q1
- Quarterly Banking Profile · Federal Deposit Insurance Corporation · 2026-Q1