A strong scope of work is one of the fastest ways to speed underwriting and prevent rehab draw delays.
Lenders and inspectors need to understand what will be done, how much it will cost, and how progress will be verified.
A vague scope creates uncertainty, which creates questions, which creates delays.
The best scopes are line-item, room-by-room, and tied to milestones that match inspections.
If the scope supports the ARV [After Repair Value], valuation confidence increases and terms become cleaner.
Use this framework to write a scope that funds smoothly from start to finish.
At a glance
- A scope of work is underwriting documentation, not a casual plan
- Line-item detail reduces questions and delays
- Tie scope items to inspectable milestones for draw releases
- Scope must match comps and ARV [After Repair Value] claims
- Include contingency and call out unknowns upfront
- Photos + scope alignment improves valuation confidence
What lenders and inspectors need to see
A financing-ready scope answers:
- What exactly is being repaired or upgraded?
- What is the budget per major component?
- What is the sequence and timeline?
- What milestones define “done” for each draw stage?
- How does the scope support ARV [After Repair Value]?
Scope of work template (copy/paste structure)
Use this format:
1) Overview
- Property address
- Strategy: flip / rental stabilization
- Target finish level: basic / mid / high (be realistic)
- Target timeline: start date, completion date, buffer
2) Exterior
- Roof: repair/replace (details)
- Windows/doors: repair/replace (counts)
- Paint/siding/stucco: scope
- Landscaping: scope
- Driveway/fencing: scope
3) Interior (room-by-room)
- Kitchen: cabinets, counters, appliances, plumbing fixtures, lighting
- Bathrooms: tile, vanity, fixtures, shower/tub, exhaust
- Flooring: type, square footage, areas
- Paint/trim/doors: scope and counts
- Lighting: fixtures, switches, panel upgrades if needed
4) Mechanical systems
- Plumbing: repair/replace, water heater
- Electrical: panel, wiring, outlets, fixtures
- HVAC [Heating, Ventilation, and Air Conditioning]: repair/replace
5) Permits and inspections
- What permits are required
- Expected timelines
- Inspection checkpoints
6) Budget
- Line items by category with totals
- Contingency line (explicit)
7) Draw milestones
- Draw 1: demo complete
- Draw 2: rough-in complete
- Draw 3: finishes installed
- Draw 4: final completion and punch list
The scope mistakes that cause draw delays
- “Rehab: 50,000” with no line items
- No milestone structure, so inspections become subjective
- Scope doesn’t match the ARV [After Repair Value] claim (value mismatch)
- Unknown issues not disclosed, then discovered mid-project
- No contingency, then change orders create funding gaps
Next step
Fix & flip program: https://ambitionlending.co/fix-flip-loans/
Hard money program: https://ambitionlending.co/hard-money-loans/
Submit a deal: https://ambitionlending.co/contact/
Frequently Asked Questions
How detailed should a scope of work be?
Detailed enough to be line-item by major component and tied to inspectable milestones. Vague scopes create delays.
Why does scope affect valuation?
Because ARV [After Repair Value] depends on what the property will become. If scope supports finishes and layout improvements, valuation confidence increases.
Do I need a contractor bid?
A contractor bid is not always required, but it can strengthen credibility and reduce uncertainty, especially on larger rehabs.
How do I tie scope to rehab draws?
Organize scope items into milestones that can be inspected: demo, rough-in, finishes, final.
What should I do about unknown issues?
Disclose the risk and include contingency. Unknowns discovered late cause the biggest delays and cost overruns.
What is the most common scope mistake?
Underestimating complexity and providing a one-line budget that cannot be verified or inspected.
