The absence of which document would likely be a concern in a draw request for a construction loan?

In the context of a draw request for a construction loan, the absence of inspection reports would raise significant concerns. Inspection reports serve as a critical assurance that the construction work completed aligns with the standards and requirements set forth in the loan agreement. They provide verification of the progress and quality of the construction work, ensuring that the funds being disbursed are justified based on completed milestones.

Without these inspection reports, lenders cannot effectively assess whether the construction is proceeding satisfactorily or if there are potential issues that could lead to either project delays or additional costs. The lack of this documentation might signal poor project management or deficiencies in compliance with safety and quality standards, which could pose financial risks to the lender.

While personal bank account statements, assessment reports, and invoice receipts are important in their context, they do not directly confirm the progress and quality of the construction work as inspection reports do. Thus, the omission of inspection reports stands out as a critical red flag in the draw request process for a construction loan.