Ontarget Systems is an Earned Value Management System (EVMS) engaged by the lending institutions to verify that financial funds to be disbursed are supported by the accomplishment of work and that the progress of the project is expected to meet or under-run budget costs.
Draw Request:
Ontarget Systems Requirements:
√ Advance deposit payments need to be approved by the lender in advance. Advance payments are generally used to cover special order purchases and long lead items, i.e. ordering kitchen cabinets. Certificates of insurance naming the lender as additionally insured maybe required. Ontarget Systems will not recommend to its clients, payments for deposits to builders or subcontractors that are not considered special order items.
√ The borrower and builder signatures shall be included on every draw request.
√ Supporting invoice(s) shall be included and coincide with each draw request.
√ Notarized waiver of lien documents from all suppliers and subcontractors related to the previous disbursement shall be submitted befor e subsequent disbursements are made.
√ The builder shall verify a funding source before undertaking any EXTRA COST OF WORK! All Change Orders shall be submitted to thelender for pre-approval!
√ Materials stored off site and being requested for payment will be reviewed and considered by the lender provided there is a copy of suppliers insured, invoice and “Right of Entry Letter” by supplier.
√ The borrower can submit for reimbursement of materials purchased as long as these materials have been carried in the budget and is supported
a paid receipt.
√ Verified savings on completed work items may be used to cover cost overruns.
√ The borrower shall clearly understand the terms and conditions of their construction contract and specifications.
√ The borrower shall be responsible to verify that public utilities are available on the building site.
√ Ontarget Systems is not responsible to inspect for workmanship or compliance with local or State codes. Codes enforcement officers are responsible to ensure that construction complies with the codes.
√ Conclusion of construction: The borrower and builder shall provide the lender with an affidavit of lien waiver, certificate of occupancy, state certified water test, all vendors final waiver of liens, and other documents as may be listed in the lender’s Loan Commitment Letter to the borrower. Funds will be held from the builder’s final disbursement until all required documents and test certificates have been provided.
√ The lender is concerned with set backs from property line and will schedule the Title Company to complete a Class D Survey. If the project does not meet the necessary set back requirements, funding could be interrupted until this condition has been corrected. Therefore, the homeowne shall determine that proper setbacks are cleared prior to the beginning of construction.
Disbursement Request:
Depending on the size of the project, the lender will determine how many times a disbursement can be requested. The number of disbursements allowed will range from three (3) to eight (8). Additional disbursements may be requested and approved by your lender, however; additional fee(s) may be assessed.
The borrower and builder are required to:
- Fill out a fully executed disbursement request form. Request forms can be found under which is located at the right side of this page. The request shall include: code number for the budget you are requesting money from, the supplier/subcontractor (vendor) name that was hired to supply the materials or conduct the work and the amount to pay. You may use the same vendor for multiple code categories or the same code for different vendors. Note: each line will have one code, one vendor, one amount. Borrower and Credit Card companies cannot be used as “vendors”.
- The lender, borrower or builder may have special instructions on how the checks are to be disbursed. Please provide Ontarget with this information. Traditionally, one check in the full amount is made payable to the builder. Checks are mailed to the builder unless other arrangements are approved by the lender. All checks made payable to individual vendors are mailed directly to the vendor unless other instructions are requested. Multiple checks can be processed for each disbursement (builder, vendor and reimbursement to borrower). Please provide these instructions on the disbursement request form.
- When the construction budget is less than the dollar amount of the invoice, the borrower(s) may be required to make a financial contribution before construction funds are disbursed from the lender. The lender may require the project to be substantially completed prior to disbursing reserve amounts.
- W-9 form: If special instructions are made to make payments to individual suppliers and subcontractors, a W-9 form must be completed and submitted with the draw request. Go to “Forms & Documents” for more information.
- Waiver of Lien(s): Waiver of liens are required from each vendor that has been paid. All waiver of lien documents are required prior to subsequent disbursements. For example: waiver of lien documents from draw one will be required prior to the disbursement of draw number two and so on. Missing waiver of lien documents may delay disbursement approval. Lien release forms can be found at the “Forms & Documents” section of this website. Each lending institution has different requirements for required lien releases. For lien releases that are exempt, consult your lender! The following may be considered.
- a. Purchases made through National retailers with proof of payment made by cash or credit card.
b. .com purchases with proof of payment made by credit card.
c. Proof of payment made to a local government for permits.
d. Payments made to local utility companies.
Supporting invoice(s): The disbursement form must be supported by invoice(s).
Site review:
Ontarget Systems prides itself with timely and accurate site reviews and reports to its clients. Providing that all documentation has been fully executed and submitted, Ontarget Systems will conduct the site review and all required reports within a few business days of the request!
Ontarget will be required to conduct a site review with each draw request. Ontarget conducts site reviews Monday through Friday and the time of site visit is difficult to predict. If the house or site is locked, we will need to be advised of a key location for access to the project. If a scheduled appointment is required, Ontarget will only schedule a morning or afternoon time frame.
Additional draw requests: The project may request additional draw requests that exceed the number of draws predetermined by the lender. Additional fees may be assessed by the lender for exceeding the number of draws allowed.
Re-visit fee: If a disbursement request is submitted and the project fails to provide total access to the project, a revisit fee may be assessed.
Deposits:
Request for deposits are submitted in the same format as a draw request. Your lender may not require a site review for payments made to vendors for deposit purposes. Ontarget Systems recommends you review the state mandates related to deposits to vendors. Go to your state’s Attorney General’s Office website for more information. See “Attorney General Websites” at the right side of this page.