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 Cedar Top review the project and set up the draw schedule, subject to underwriting.

A clear scope of work is one of the most important parts of a fix-and-flip financing request. 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 can 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 vague plan is hard to review; a clear scope of work shows what you are doing, what it costs, and how the project comes together.

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 usually 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 Cedar Top May Review on a Fix-and-Flip

On a fix-and-flip, the renovation plan is reviewed alongside the property, the borrower profile, and the exit. Depending on the request, Cedar Top may review the purchase price, the scope of work and budget, value support for the projected value, photos, and the resale exit. Cedar Top reviews the property, project plan, borrower profile, and exit strategy before determining whether a financing request fits, subject to underwriting.

What Can Weaken a Scope of Work

These do not always stop a request, 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

A few things tend to slow investors down:

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

Example Scope of Work Scenarios

These are general, illustrative scenarios, not real customers, quotes, or commitments to lend. Every project is reviewed on its own, subject to underwriting.

A cosmetic rehab. An investor brings a line-item scope for paint, flooring, fixtures, and a kitchen refresh, with a timeline and a resale plan.
A full renovation. An investor brings a scope covering systems, interior, and exterior work, a line-item budget with a contingency, and value support.
A scope that evolves. An investor updates the scope and budget mid-project and documents the change, keeping draws tied to completed work.

In each scenario, Cedar Top reviews the property, scope of work, budget, and exit before determining whether a financing request fits, subject to underwriting, title review, documentation, and approval.

Have a Texas Fix-and-Flip Project to Review?

If you have a business-purpose, non-owner-occupied Texas investment property, Cedar Top can review the property, scope of work, and financing request. 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 Cedar Top understand the project and how draws will be released, subject to underwriting.

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 typically 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?

Contractor information can add context to the review where available, though what is needed depends on the project and the financing request.

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.