The Core Rule
Never release a draw payment until the inspection for that phase is complete and signed off.
Draw payments are your leverage. Once money leaves your account, your ability to require corrections drops significantly. Tie every payment to a verified, inspected milestone — and walk the site yourself before approving each draw.
Complete Inspection Checklist — All 8 Phases
Use this before releasing each draw. Items marked with required inspections mean official municipal sign-off is needed before proceeding.
- ☐Permit posted and visible on site
- ☐Survey stakes in place and matching the plan
- ☐Site access road established
- ☐Erosion control measures in place
- ☐Utility locates completed (call 811)
- ☐Temporary power and water connected
- ☐Portable toilet on site
- ☐Contract signed with milestone-based draw schedule
- ☐Foundation inspection passed (get the signed card)
- ☐Footings at correct depth per plans and local code
- ☐Foundation walls plumb and square (check diagonals)
- ☐Anchor bolts in correct location and spacing
- ☐Waterproofing and drainage membrane applied
- ☐Foundation drain tile installed
- ☐Backfill not done before inspection passes
- ☐No visible cracks wider than 1/8"
- ☐Radon mitigation rough-in if required
- ☐Framing inspection passed
- ☐All walls plumb (check with level — more than 1/4" per 8' is a problem)
- ☐Floor system flat (no more than 3/16" variation over 10')
- ☐Header sizes match structural plans
- ☐Double top plates lapped at corners
- ☐Window and door openings match plan dimensions
- ☐Roof structure matches plans — ridge, rafters, trusses
- ☐Sheathing nailing pattern per code (check nail spacing)
- ☐House wrap installed and taped at seams
- ☐All penetrations (pipes, wires) through framing sealed
- ☐Fire blocking installed in required locations
- ☐Garage wall framing complete with fire-rated drywall spec noted
- ☐Plumbing rough-in inspection passed
- ☐Electrical rough-in inspection passed
- ☐HVAC rough-in inspection passed
- ☐All three trade inspections signed off before proceeding to insulation
- ☐Plumbing drain lines at correct slope (1/4" per foot)
- ☐Water supply lines supported every 4'
- ☐Electrical panel location and size match plans
- ☐All circuits roughed in and labeled
- ☐HVAC ducts sealed at all connections (mastic or foil tape)
- ☐Exhaust fans ducted to exterior (not to attic)
- ☐Bath fan and range hood ducts terminate outside
- ☐Low-voltage (data, audio, security) roughed in if specified
- ☐Blocking installed for future grab bars, TV mounts, cabinets
- ☐Insulation inspection passed
- ☐R-value matches plans and local energy code
- ☐Exterior walls fully insulated with no gaps
- ☐Rim joists insulated
- ☐Attic insulation depth marked on inspection ruler
- ☐Air sealing at penetrations (outlets, pipes, wires)
- ☐Vapor barrier installed correctly for your climate zone
- ☐Crawl space (if applicable) insulated and vapor barrier in place
- ☐Spray foam at window and door frames before drywall
- ☐Drywall finish level matches spec (Level 4 or Level 5)
- ☐No visible seams, bubbles, or fastener pops
- ☐Corners straight and sharp
- ☐Ceiling flat — no waves or sagging
- ☐Garage drywall is Type X fire-rated (5/8")
- ☐Moisture-resistant drywall in bathrooms
- ☐Drywall fully taped and mudded before painting begins
- ☐Paint color and sheen match approved selections
- ☐Trim paint clean — no drips or lap marks
- ☐Cabinet installation level and plumb
- ☐Cabinet doors and drawers operate smoothly
- ☐Countertop seams tight and level
- ☐Tile grout complete and sealed
- ☐Flooring transitions flush and secure
- ☐Hardwood flooring acclimated before installation (3–5 days)
- ☐All fixtures per approved selection schedule
- ☐Interior doors operate and latch correctly
- ☐Closet shelving per plans
- ☐Certificate of Occupancy issued
- ☐Final electrical inspection passed
- ☐Final plumbing inspection passed
- ☐Final mechanical inspection passed
- ☐All punch list items from prior walkthroughs complete
- ☐All appliances installed and operational
- ☐Grading slopes away from foundation (minimum 6" in 10')
- ☐Driveway complete
- ☐Site cleaned — no construction debris
- ☐All keys, manuals, and warranties provided
- ☐HVAC filters installed and system balanced
- ☐Smoke and CO detectors tested
- ☐Attic access insulated and weather-stripped
- ☐Exterior caulking complete at all penetrations
- ☐No visible damage to any finish surface
Frequently Asked Questions
Should I hire an independent inspector for new home construction?
Yes. A third-party construction inspector costs $200–$400 per visit and provides an unbiased assessment at each phase. The municipal inspector checks code compliance — a private inspector checks quality, workmanship, and adherence to your plans and specifications. Both serve different purposes.
What is the most important inspection phase in new home construction?
Framing and rough-in are the most critical phases because everything that follows covers them up. Problems in framing, plumbing, electrical, and HVAC become extremely expensive to fix after drywall is installed. Never allow the contractor to skip or rush these inspections.
Can I do my own construction inspections?
You can walk the site at each phase and use a checklist, but you should not rely solely on your own inspection. Code-required inspections must be performed by licensed municipal inspectors. For quality and workmanship, a licensed independent inspector has the training to spot issues that are not obvious to untrained eyes.
What should I check before releasing each draw payment?
Before releasing any draw payment: (1) verify that the milestone is genuinely complete, (2) confirm that all required inspections for that phase have passed and you have the signed inspection card, (3) walk the site yourself and photograph completion, and (4) require lien waivers from all subcontractors paid in that phase.
Kerem is a construction cost analyst and architectural graduate with a degree from the Illinois Institute of Technology. He has spent over a decade analyzing residential and commercial build costs across all 50 U.S. states, and leads the cost methodology team at Equin Global LLC — the company behind CostToBuildHouse.com.
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