Taxes: Rehab without receipts from contractor

[Tae C.]

Hey all,

I recently began my first flip project as an out of state investor. I was able to vet out a project manager/coordinator group that manages all aspects of the rehab especially for remote investors.  They have several contractors locally they've built repoire with over the years, so this company manages the contractors for the clients.  I have had a great experience with them thus far and they have come highly recommended through various sources. I am not here to speak poorly about them, but if anything my issue may just have been a direct result of my own ignorance. 

The situation is, as I prepare to have my first tax strategy planning call with my newly hired cpa/tax strategist, the thought hit me that I should probably be keeping track of all the rehab costs receipts - this led me to ask my project manager if receipts would be available from the contractor at the end of the rehab peocsss. He informed me that this is not common practice, and that bc the contractors are purchasing all the materials technically, they will not save receipt so for me. My contention was that at the end of the day, it's through my loan with my HML that they will receive full reimbursement for the materials upon draw requests being approved - it seems to me I am still the one who ultimately pays for everything.

Two questions:

1.) am I wrong to assume this?

2.) if I am correct in my assumption, let's set aside for now the suggestion of just demanding from my project manager that they need to force the contractor save all the receipts for me, bc I don't see that likely to go well for anyone involved. Having said this - is there another legitimate way I could keep valid track of all my rehab expenses for tax purposes? I keep track of all costs via excel, and obviously I have documentation of all Draw disbursements as well as the original HML document with rehab cost documented.

Would appreciate any kind of input - I'm just learning as I go, and I obviously have much to learn. Thank you for your help!