Scope of Work: The Line-by-Line Plan for Your Rehab

A scope of work (SOW) is the written plan for a renovation or build. It lists each task, the cost of each task, the materials, and the timing. Lenders use it to underwrite rehab and construction loans, and to release funds as work gets done.

What a strong one looks like

Break the job down by room or system. Show a cost per line, the finish level, who is doing the work, and a target schedule. Add a contingency line.

A simple example

Example, round numbers. "Kitchen: $40,000" tells a lender very little. Compare:

• Demo and haul-off: $3,000
• Cabinets: $14,000
• Quartz counters: $6,000
• Plumbing and fixtures: $5,000
• Electrical and lighting: $4,000
• Flooring: $4,000
• Paint and trim: $2,000
• Contingency: $2,000

Same $40,000. Now the lender can check it against the after-repair value (ARV) and tie draws to each line.

How it links to draws

On most rehab loans, the renovation budget is held back and paid out in stages. When a phase is done, an inspection confirms it, and that portion is released. A vague SOW makes every draw a debate. If the plan changes mid-job, update the scope with your lender before the work is done, not after.

Why it matters to you

A clear, realistic scope speeds underwriting and keeps draws moving. Get contractor input before you submit it, and match finishes to what buyers or renters in that area will pay for.

A scope of work is one of the documents RSC Private Lending typically requests on a rehab loan, along with property details, the purchase agreement, proof of funds and borrower information. Fix & Flip loans can cover up to 100% of rehab, within the program's total cost and ARV limits. Send us your scenario for a term sheet in 24 hours. Subject to underwriting.