Draw Schedule

What is a Draw Schedule?

A draw schedule is a predetermined payment timeline that specifies when contractors receive payments throughout a construction project. It breaks the total contract amount into smaller payments tied to specific milestones or completion percentages.

Draw schedules help contractors maintain cash flow while giving clients control over payments based on work progress.

Common Draw Schedule Types

Milestone-Based

Payments tied to specific project completions (foundation, framing, roofing, etc.).

Percentage-Based

Payments made when certain percentages of work are completed (25%, 50%, 75%, 100%).

Time-Based

Regular payments on set dates (monthly, bi-weekly) regardless of completion status.

Materials and Labor

Separate draws for material costs and labor expenses.

Typical Draw Schedule

1. 10% - Contract signing and permits
2. 20% - Foundation and site preparation complete
3. 25% - Framing and rough mechanical complete
4. 20% - Drywall, roofing, and exterior complete
5. 15% - Interior finishes and fixtures complete
6. 10% - Final completion and punch list items

Benefits for Contractors

• Steady cash flow throughout the project
• Reduced risk of non-payment at project end
• Material funding for large purchases
• Work motivation with regular payment milestones

Benefits for Clients

• Payment control tied to actual work progress
• Quality assurance before releasing funds
• Budget management with predictable payment schedule
• Dispute resolution if work quality issues arise

Best Practices

• Be realistic: Set achievable milestones that match actual work flow
• Include details: Clearly define what constitutes completion for each draw
• Document progress: Take photos and keep records for each milestone
• Inspect thoroughly: Verify work quality before requesting payment
• Plan cash flow: Ensure draw amounts cover materials and labor costs