Fix and Flip Scope of Work Checklist

Quick answer

A fix-and-flip scope of work is a written renovation plan: the line-item work, the budget for each item, and the general timeline. A clear, realistic scope of work and budget help the review and set up the draw schedule.

A clear scope of work is one of the most important parts of a fix-and-flip deal. It turns the renovation into a plan Cedar Top can review, and it sets up how your draws will be released. This checklist covers what a scope of work and budget should include. For the full review picture, see hard money loan requirements in Texas.

What a scope of work is

A scope of work is a written renovation plan for a non-owner-occupied investment property. It lists the work to be done, the budget for each item, and the general timeline. A clear scope of work shows the work and what it costs; a vague one is hard to review.

What a scope of work should include

Use this as a starting point. The right level of detail depends on the project and the property.

Component	What to include	Why it matters
Line-item work	Each task by area or system	Shows the full project
Material and labor costs	Cost for each line item	Supports the budget
Timeline	The sequence and duration of the work	Shows feasibility
Contractor information	Who performs the work, if available	Adds context
Permits	Where applicable to the work	Keeps the project on track
Value support	Comparable sales for the projected value	Supports the resale plan

Line-item areas to cover

Breaking the renovation into areas helps build a complete, line-item scope. Depending on the property, you may cover:

Exterior and structure

Roof, siding, and exterior
Foundation items, where relevant
Windows and doors

Systems

HVAC
Electrical
Plumbing

Interior

Kitchen and baths
Flooring, paint, and fixtures
Interior finishes

Site and other

Landscaping and exterior site work
Permits, where applicable
A contingency for the unexpected

Building a realistic budget

Underestimating cost is a common scope-of-work mistake. A budget that ties realistic costs to specific work is easier to review than an optimistic lump sum. You can estimate your project numbers with the fix and flip profit calculator and the hard money loan calculator, then build the scope of work around them. Nothing in a calculator is a quote.

How the scope of work ties to draws

Renovation funds are released in draws as stages of the scope of work are completed and inspected. A clear, well-organized scope makes it easier to request and document each draw. For how that works, see how hard money loan draws work. Keep the scope and budget updated as the project moves.

What we review on a fix-and-flip

On a fix-and-flip, we review the purchase price, the scope of work and budget, value support for the projected value, photos, the borrower profile, and the resale exit before determining whether a deal fits.

What can weaken a scope of work

These do not always stop a deal, but they can slow the review or require more documentation:

A single lump-sum budget with no line items
Underestimated renovation costs
No timeline or sequence
A scope that does not match the property's condition
A projected value not supported by comparable sales

Common scope of work mistakes

Treating the budget as a single number
Leaving out a contingency
Forgetting permits where the work calls for them
Drifting off the scope mid-project without updating it
Unsupported value assumptions

Apply for a Texas fix and flip loan.

Include the property, the scope of work, and the budget, or call 817-984-3129. Review is subject to underwriting, collateral review, title review, documentation, and approval.

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Frequently asked questions

What is a scope of work?

A scope of work is a written plan of the renovation - the tasks to be done, the budget for each, and the general timeline. It turns a rough idea into a clear, reviewable plan for a non-owner-occupied investment property.

Why do lenders review a scope of work?

The renovation plan is a major part of a fix-and-flip review. A clear scope of work and budget help us understand the project and how draws will be released.

How detailed should my budget be?

A line-item budget that ties costs to specific work is more useful than a single lump sum. The right level of detail depends on the project and the property.

What if my budget changes mid-project?

Renovation plans can change. Keep your scope of work and budget updated and communicate changes, since draws are tied to the work that is actually completed and inspected.

Does the scope of work affect draws?

Yes. Renovation funds are released in draws against completed stages of the scope of work, so a clear scope helps the draw process run smoothly.

Do I need a contractor lined up?

Not required. Contractor information adds context where available, but what is needed depends on the project.

Should I include permits in my scope of work?

Where work calls for permits, noting them in the scope of work helps keep the project on track. Permit requirements depend on the work and the local jurisdiction.

How does the scope of work relate to ARV?

The scope of work describes the renovation, and the projected value after the work is supported separately, often by comparable sales. ARV is defined in the private money loan glossary.

What can weaken a scope of work?

A single lump-sum budget, underestimated costs, no timeline, or a scope that does not match the property's condition can all weaken a scope of work and slow a review.

Where can I estimate my project numbers?

You can estimate your project numbers with the fix and flip profit calculator, then build the scope of work around them. Nothing in a calculator is a quote.

This article is general education for real estate investors, not financial, legal, or tax advice. Non-owner-occupied investment property only. Terms, rates, and availability are subject to underwriting, collateral review, title review, documentation, and approval. This is not a commitment to lend. See our disclosures.