Scope of Work Templates for Hard Money Borrowers

A scope of work (SOW) is not a contractor wish list — it is the underwriting document that ties your rehab budget to ARV, sets your draw schedule, and determines whether hard money lenders fund 85% or pass on the file. Generic “kitchen remodel $25K” lines get redlined; trade-by-trade line items with quantities get approved at close.

This guide provides scope of work templates for hard money borrowers — category structure, contingency rules, milestone mapping, and lender review patterns. For submission workflow, see how to submit a scope of work. Model total project economics on the fix and flip calculator.

Why lenders care about SOW granularity

Vague SOW	Granular SOW
”Full rehab $80K”	47 line items by trade
ARV unsupported	Rehab reconciles to comp condition
Draw disputes	Milestone releases match inspection
Change orders kill margin	Contingency pre-approved

Underwriting compares SOW total + purchase against ARV × LTV cap. Overbudget SOW = lower leverage or decline.

Master SOW template — category structure

Use this table as your Excel/Google Sheets skeleton. Adjust unit costs to market — these are Midwest/Southeast illustrative (2026).

Demo and site prep

Line item	Qty	Unit	Unit cost	Extended
Interior demo — kitchen	1	lump	$2,800	$2,800
Interior demo — primary bath	1	lump	$1,600	$1,600
Debris haul-off	3	load	$650	$1,950
Dumpster rental	2	mo	$450	$900
Subtotal demo				$7,250

Rough mechanical

Line item	Qty	Unit	Unit cost	Extended
Electrical panel upgrade (200A)	1	lump	$3,200	$3,200
Rough electrical	1,450	sf	$4.50	$6,525
Plumbing rough — kitchen/bath	1	lump	$4,800	$4,800
HVAC system replacement	1	lump	$7,500	$7,500
Subtotal rough				$22,025

Kitchen

Line item	Qty	Unit	Unit cost	Extended
Cabinets (stock + install)	18	lf	$185	$3,330
Countertops — quartz	42	sf	$68	$2,856
Appliances — mid package	1	set	$2,400	$2,400
Backsplash tile + install	32	sf	$22	$704
Subtotal kitchen				$9,290

Baths

Line item	Qty	Unit	Unit cost	Extended
Primary bath — full gut	1	lump	$9,500	$9,500
Hall bath — refresh	1	lump	$4,200	$4,200
Subtotal baths				$13,700

Finish and exterior

Line item	Qty	Unit	Unit cost	Extended
Drywall repair + texture	1,450	sf	$2.80	$4,060
Interior paint	1,450	sf	$1.85	$2,683
LVP flooring	1,100	sf	$4.25	$4,675
Exterior paint	1	lump	$5,800	$5,800
Landscaping refresh	1	lump	$2,200	$2,200
Subtotal finish				$19,418

Contingency and permits

Line item	Qty	Unit	Unit cost	Extended
General contingency (10%)	1	lump	$7,168	$7,168
Building permits + fees	1	lump	$2,400	$2,400
Subtotal contingency				$9,568

Grand total SOW: ~$81,251

Full submission process: how to submit a scope of work.

Draw milestone mapping

Align SOW categories to draw releases — lenders inspect against approved lines, not “progress feels good.”

Draw #	Milestone	SOW categories funded	Typical %
1	Close + demo start	Demo, dumpster	15%–20%
2	Rough-in complete	Electrical, plumbing, HVAC rough	25%–30%
3	Drywall / mechanical trim	Kitchen cabinets, bath rough	25%–30%
4	Finish	Paint, floor, appliances	20%–25%
5	Final	Landscaping, punch list	5%–10%

Draw detail: fix and flip draw process guide.

SOW templates by project tier

Cosmetic tier ($35K–$55K)

Category	% of budget
Paint / floor	35%
Kitchen refresh	25%
Bath refresh	20%
Mechanical touch	10%
Contingency	10%

Best for: Indianapolis bungalows, collar-county SFR — see best neighborhoods flip Indianapolis 2026.

Mid tier ($55K–$95K)

Full template above. Best for: Chicago South Side brick, Charlotte value-add.

Heavy tier ($95K–$150K+)

Add: foundation, roof, structural, addition line items with engineer letter attached.

Best for: Chicago two-flats — Chicago two-flat financing.

Lender red flags in SOW review

Red flag	Lender response
No contingency	Require 10% add
Rehab > 50% of purchase	ARV scrutiny
GC bid missing	Hold approval
Permit line $0 in Chicago	Reject or revise
Single lump-sum line	Redline to trades

Product context: fix and flip loans Chicago · what is a hard money loan.

Worked example — SOW vs ARV reconciliation

	Amount
Purchase	$285,000
Approved SOW	$81,251
All-in	$366,251
ARV (appraisal)	$425,000
Lender ARV cap (72%)	$306,000
Max loan on ARV	$306,000
Max LTC (88%)	$322,301

Binding constraint: ARV cap at 72% — not LTC. SOW accuracy directly affects leverage.

Run scenarios on the fix and flip calculator.

Attachments checklist

Submit with SOW per how to submit a scope of work:

• GC signed proposal matching line totals
• GC license + insurance COI
• Interior/exterior photo set
• ARV comp summary (3 sold)
• Permit pre-application (if required)
• Timeline Gantt (start → CO)

Common borrower mistakes

Mistake	Fix
Copy-paste SOW from last deal	Re-line every property
Underbid to win loan	Inspectors reject draws
No change-order process	Pre-approve contingency use
Skip exterior photos	ARV support weakens
Submit after close	Get approved pre-close

Bottom line

Scope of work templates for hard money borrowers succeed when line items match inspection milestones, contingency is explicit, and totals reconcile to ARV. Start from the category template above, submit per how to submit a scope of work, and fund through fix and flip loans Chicago or your state hub.

Next reads: How to estimate rehab costs · Fix and flip draw process · Chicago two-flat financing

Scope of Work Templates for Hard Money Borrowers: Line-Item Guide — next step (2026)

Bridge 8.99%–13.5% IO works when sold comps, scope contingency, and resale timeline are in the file at LOI — not ARV alone.

Submit scenario · Pre-qualify · (833) 264-7776.