Draw Schedule

Draw schedules protect both owners and contractors by tying payments to completed work. Typical schedules include: 10% deposit, 25% after demo and rough framing, 25% after rough-in inspection passes, 25% after drywall and finishes, and final 15% after completion and final walkthrough. This structure ensures contractors have working capital while owners don't pay for incomplete work. For financed projects, lenders often require inspection before releasing each draw, verifying work completion matches payment requests.

Why It Protects You

Never pay large sums upfront. Draw schedules ensure: contractors complete work before payment, you can verify quality before paying, and you maintain leverage throughout the project. If a contractor demands 50% upfront, that's a red flag—they may lack working capital or credit. Legitimate contractors work on draw schedules routinely. Each draw should roughly match work completed value. Review carefully before authorizing payments—once money is released, your leverage decreases. Withhold final payment until punch list completion and final walkthrough acceptance.

Typical Draw Schedule Structure

• Deposit: 10% at contract signing (materials ordering, scheduling)
• Draw 1: 25% at demo complete and framing/structural work done
• Draw 2: 25% at rough-in complete and inspection passed
• Draw 3: 25% at drywall complete and finishes substantially done
• Final draw: 15% after final walkthrough, punch list complete, permits closed
• Adjust percentages based on project specifics and lender requirements