Cheryl Knowlton: Hi everybody. Cheryl Knowlton, Dynamite Productions, coming at you for episode four of One Time Close with my favorite sidekick, Clay Johnson of Castle and Cook. All right, so what happens during the construction phase?
Clay Johnson: Well you’ve got a couple of things going on there. You’re building. People driving by on a regular basis. You know how it’s progressing.
Cheryl Knowlton: It’s so exciting.
Clay Johnson: It is exciting. One of the things that we want to see as a lender is how is the project progressing? There is kind of some time frames that can be extended because you will have unforeseen weather events and things of that nature.
Cheryl Knowlton: Unforeseen weather. I’ve never heard of such a thing.
Clay Johnson: Not in Utah.
Cheryl Knowlton: Not in Florida either.
Clay Johnson: But you do have these kinds of inspections that are along with the different phases and it’s saying, okay, this is what you were going to do, that’s done, that’s completed. And then there’s an additional disbursement that’s issued for that to do the next phase.
Cheryl Knowlton: General contractor and the subs both love disbursement.
Clay Johnson: That’s right. They want to get paid. So there is a motivation for them to say, hey, we hit these requirements for phase one.
Cheryl Knowlton: Absolutely, these benchmarks and so it’s time to get paid when we hit the benchmarks.
Clay Johnson: Release some funds and they’re good to go. And that kind of keeps them working keeps them motivated and keeps them progressing. So there’ll be a series of those depending on the scope of your project that’ll kind of happen during that time, of disbursements that take place.
And then of course at the very end, you have a final inspection where they kind of evaluate, make sure everything was done and hopefully, the city is able to come out and issue you what we call a C of O.
Cheryl Knowlton: Yes. A certificate of occupancy, which is very exciting.
Clay Johnson: And then you know you’re going to be good to move in. You’ll probably still have some landscaping, a few little things to tidy up around the outside of the house of course. But as far as the house is ready to be occupied, then you are ready to roll. So hopefully that helps you understand that phase. Click our messages below and we’ll be happy to respond to any questions you may have. And until next time …
Cheryl Knowlton: We’ll see you in episode five for wrap up.