If you had an architect, they would review construction progress all payments.

I didn't have an architect

I should say the bank does an inspection but wondering if I should add some more for added peace of mind.

We could have paid cash for the build, but used a bank to function as the middle man and provide inspections before any funds were paid out. The bank inspector was very thorough and also took lots of photos to prove that the items they were paying for had actually been completed. I think the checks and balances means that a builder can't get too far ahead of the draws ... banks prefer not to lose money and/or get caught in litigation!

You can definitely also hire your own building inspector to check the quality of the work being done. Look for an inspector with a Professional Engineer certification and with new construction experience.

Inspections by the lender are a good means of protecting against payment for incomplete work as chispa notes above. They aren't a guarantee the work meets code requirements. If the municipality in which you're building requires permits and inspections, you stand a reasonable chance that the home will comply with code requirements. Keep in mind that code compliance inspections are a "sampling" not comprehensive inspections. A paid third-party inspector would do a more thorough inspection. If you don't have anyone else inspecting for code compliance I would definitely invest in a third-party inspector. Keep in mind that unless there is a quality standard incorporated in your construction contract, you may have trouble getting your builder to correct things you find objectionable, but which comply with the applicable building code.

ETA: It's not clear what litigation your builder is involved in. If you don't have an attorney acting as Mechanic's Lien Agent on your behalf, I recommend you get one on board ASAP. If you are working with a lender, you most likely already have one.

You will pay way more for a PE to inspect it at all the critical points than you would have spent architect to have designed it, and screened out the builder.

In my experience, the bank inspection was cursory at best. like "are the cabinets installed", "is there an HVAC system" . HIring someone for you to understand it this is being done RIGHT is a whole other ballgame.

For sure pay for a third party. Be prepared for a lot of extra expense and delay, that alienates the builder, and creates a miserable building experience for everyone.

Be prepared, with your lawyer’s review, to have to walk away.

Hogwash Monique . What is the alternative? To just accept possibly substandard or erroneous work ?

What type of construction is this? Custom, semi-custom, tract/developer? What type of contract do you have? All of this will effect the answer to your question.

Thanks everyone for the advice. I've decided I'll get a third party inspection for each remaining draw.

It might make the relationship less rocky, but honestly ita pretty bad at this point. I just had to deny his latest draw request for "substantial completion of septic, flooring and fireplace" because there was no floor in the bathrooms, garage, or stairs. Also no stone around the fireplace yet.

Sorry I meant more* rocky

With respect to payments, you need to be concerned about paying for various line items prior to their completion, and also whether suppliers and trades on your project are being paid by the builder. If not, suppliers and trade contractors may be able to file mechanic's liens against the property. A consultation with an attorney is in order.