Step 1 - Estimating Construction Costs
    T3 will assist you (the homeowner) with plan and product selections that fit your desires
    and budget. After you have selected a plan and products for the home T3 will then
    complete the estimating process. A draw schedule and contract will be generated.
    You can also participate in the selection of subcontractors

    Step 2 - The Contract
    The contract will communicate your selections. The contract will also provide the
    process for the dispersal of project funds. Here is an example of contract language for
    this purpose:
  • Payments will be made based on completed work and/or delivered materials.
  • Payments of the Contract Price shall be paid using the following process:
  • Contractor and Owner will review invoices on or about the 1st and 15th of each
    month and prepare and deliver a draw to Franklin Bank. This draw will be based
    on the payment schedule in Appendix B.
  • Contractor will receive draw and pay all suppliers and subcontractors
  • Contractor will supply Owner with a  copy of “release of liens.”

    Step 3 - The Draw Form
    The draw form is an appendix to the contract. The draw from is used to calculate the
    value of completed work. Once or twice a month you and T3 will review the site, bills
    from suppliers and complete a draw form.

    Step 4 - The Construction Loan Draw Request
    The draw form is then used to complete a “construction loan draw request.” The loan
    draw request is the sent to the lender as a request for funding. The bank expects you
    and T3 to agree on the amount by jointly signing the request. The lender will review and
    appraise the project for the requested amount and funds will then be disbursed to T3.

    Step 5 - Payments and Lien Releases
    T3 will immediately pay all vendors and subcontractors associated to the specific draw.
    In exchange for payment a subcontractor will provide T3 with either a “partial release of
    liens” or a “final release of liens.” T3 will copy the release of liens and provide them to
    you.

    Step 6 - Project Closeout
    At project close out you and T3 will review the project and all related contract documents.
    T3 will verify that you have received a “FINAL release of lien for all subcontractors.”

    SUMMARY
    This process will:
  1. Provide transparency of the project to you.
  2. Provide assurance that vendors and subcontractors have been properly paid.
    Assurance that funds for your project are applied to your project.
  3. Help build a trusting relationship between us.
RELATED SUBJECT

Custom Homes

Quality Process
The Steps for Project Transparency
T3 Homes
Innovation, Quality and Value
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