Construction Period Disbursements. If the loan finances construction or rehabilitation, the Administration shall: Conduct on-site inspections of the construction; Make construction loan disbursements on the basis of work-in-place, plus materials acceptably stored on-site, less a retention of up to 10 percent of the construction request; and Make disbursement for materials acceptably stored off-site, if the materials are: In a bonded warehouse; Set aside and labeled with the project's name; Inspected by the Administration's inspector; Insured with the Administration as a named insured; and Documented by evidence of payment for the materials. Cost Certification. For loans financing new construction and substantial rehabilitation under a cost-plus form of construction contract, the Administration shall require the sponsor and contractor to submit, upon completion of the project, a certification of project costs prepared by an independent accountant. Permanent Mortgage Closing. A closing shall be arranged after construction completion and cost certification according to procedures and documentation as may be required by the Administration.