In commercial development, value is not created all at once — it’s built over time.
As foundations are poured, structures rise, and finishing work begins, progress inspections ensure each stage aligns with approved plans and financing.
For Canadian lenders, investors, and owners, these inspections provide confidence that funds are advanced only for verified, completed work. For appraisers, they bridge projected value to actual progress on the ground.
2025 Canadian Reality: With BoC rates at 2.50% and 22% of commercial projects delayed (Altus Group 2024), progress inspections are your essential safeguard.
What Is a Progress Inspection?
A progress inspection — also called a construction draw inspection — is a professional site review at key milestones in a Canadian commercial build. An AACI-designated appraiser visits, assesses completion, and compares it to approved plans, specifications, and budget (per CMHC guidelines).
The result? A Progress Inspection Report that includes:
- Current stage of construction (% complete)
- Verification of completed work and materials
- Photos and commentary on quality, conformity, and timing
- Comparison to previous inspections and draw schedules
This allows lenders to release funds in stages — ensuring disbursements match actual, measurable progress.
Pro Tip: First inspection at 15% complete catches issues early (CMHC ML-200).
| Milestone | % Complete | Typical CAD Draw | CMHC Focus |
|---|---|---|---|
| Foundations | 10-15% | $1-3M | Soil/rebar (ON soil regs) |
| Framing | 30-40% | $3-8M | Structural (BC seismic) |
| MEP Rough-In | 50-60% | $5-10M | Code compliance |
| Finishes | 80-90% | $4-7M | Quality verification |
| CO Ready | 100% | Final 10% | Full appraisal |
Source: CMHC Commercial Lending Guidelines, 2025
Why Progress Inspections Matter
Protecting the Lender and Investor
Funds advance only after verification — reducing exposure.
Maintaining Accountability
Keeps builders, contractors, and owners on schedule.
Ensuring Value Matches Investment
Links milestones to value creation.
Supporting Risk Management
Meets OSFI/CMHC compliance. Stat: $850M CAD in fines for poor monitoring (2024). Our reports provide audit-ready protection.
The Appraiser’s Role
Appraisers conducting progress inspections are the lender’s eyes and ears. We bring objective, market-informed perspective — ensuring each draw request reflects verifiable work.
Our AACI expertise flags concerns early: cost overruns, quality issues, or changes impacting final value (e.g., +12% industrial demand in Alberta 2025).
In Summary
Progress inspections are more than site check-ins; they are a critical safeguard in Canadian commercial lending and development. They ensure construction proceeds according to plan, disbursements are justified, and value is built — literally and financially — at every step.
At Quality Appraisals, we view progress inspections as essential for protecting clients’ investments and ensuring transparency from blueprint to completion.
