Draw Schedule

A pre-agreed payment schedule for a construction project, tied to milestones or percentage of completion.

A draw schedule maps out when the contractor gets paid over the life of the job. Each draw is tied to either a calendar date, a percentage of completion, or a milestone like rough framing complete or drywall hung.

Common residential schedules: a deposit at signing (often 10-30%), then 2-4 draws at milestones, then a final payment at completion minus any retainage.

A well-built draw schedule keeps the contractor's cash flowing without overpaying ahead of work. A bad one (back-loaded payments) is one of the top reasons contractors go upside-down on a job.

Related

• Retainage — A percentage of each progress payment (typically 5-10%) that the owner or GC withholds until the job is fully complete and accepted.
• Deposit — An up-front payment collected when a contract is signed, typically 10-30% of the contract value.
• Progress Billing — Invoicing in stages as work is completed, instead of billing only at the end of the job.
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