Progress Advance Inspections: How Appraisers Keep Construction Financing on Track

Yesterday (despite the heavy rainfall) our team was on site completing progress advance inspections for a small multi-family development - one of the most practical and important assignments we handle for lenders and builders across Vancouver Island.

What Is a Progress Advance Inspection?

A progress advance inspection (also known as a construction draw inspection or progress report) is a site visit completed by a qualified appraiser to verify that construction is advancing according to approved plans and specifications.

The appraiser assesses how much of the project is physically complete and provides the lender with an independent, certified report confirming percentage completion, quality, and value to date. This information allows the next loan draw to be released confidently and accurately.

Who Requires It

Progress inspections are typically required by:

• Banks and credit unions

• CMHC and other insured lenders

• Private and construction lenders

They are an essential safeguard in staged construction financing.

When and How Often They Occur

Most small-scale residential or multi-family projects involve 4–6 inspections throughout the build:

1. Foundation and framing complete

2. Building closed in (roof, windows, doors)

3. Rough-in mechanical and electrical

4. Interior finishes underway

5. Final inspection at substantial completion

At each stage, the appraiser conducts a site visit, reviews plans, photographs key elements, and reports on:

• Percentage completion by major component (foundation, framing, envelope, interior)

• Remaining cost to complete

• Variances or deficiencies observed on site

What the Report Includes

Our reports typically include:

• Date-stamped site photographs

• Narrative summary of progress and quality

• Certified appraiser’s signature and AIC designation

• Recommendations for the percentage of funds eligible for release

This gives lenders a clear, factual snapshot of progress and helps borrowers access their next draw without delay.

Why It Matters

Without accurate verification, lenders risk over-advancing funds before work is complete or under-funding critical stages. Both scenarios can lead to delays, disputes, or even project failure.

Progress advance inspections keep financing aligned with the true physical and market value at each stage - protecting lenders, developers, and owners alike.

A Local Example

This week’s inspections on a small townhouse project highlight how valuable this process is. Clear documentation and regular updates helped ensure financing milestones matched construction reality, keeping trades working and timelines on track.

The Appraiser’s Role

Appraisers bring a combination of construction knowledge, cost analysis, and market insight. As independent professionals, we don’t manage the build - we verify and quantify progress objectively. That independence is what lenders and owners rely on.

Final Thought

Every project under construction on Vancouver Island represents years of planning, investment, and effort. Progress advance inspections may be behind the scenes, but they’re the link that keeps financing, progress, and confidence moving together.

At Jackson & Associates, our goal is clarity, accuracy, and trust - from first foundation to final occupancy.

Appraiser conducting an on-site construction progress inspection for a small multi-family development in Courtenay, British Columbia, verifying percentage completion and building stages for lender reporting.