Construction draw schedule template, and how to actually use it

What a draw schedule is

A draw schedule breaks the contract price into payments tied to stages of the work: a deposit, then draws at milestones like foundation, framing, dry-in, rough-ins, drywall, trim and final. Each draw is a set amount or a percentage of the contract. When a stage is complete, you bill that draw.

The point is simple: you shouldn't be carrying the client's job on your own money. If each draw covers the work up to that stage, your cash stays close to even while the job moves.

How to set one up

1. Start from the signed contract price. Every draw is a share of that number, and the draws add up to 100%.
2. Tie each draw to something you can see on site. "Framing complete" or "drywall hung" beats "week 6." The client, the lender and your crew can all agree whether it happened.
3. Front-load enough to cover materials. If a stage needs a big material order, make sure the draw before it covers that order.
4. Write down retainage up front if your contract holds any back (see below).
5. Track billed, received and late for every draw, not just the total.

Retainage, in plain terms

Retainage is a slice of each payment the owner holds back until the job is finished, commonly somewhere around 5% to 10%. Your contract and your state's rules decide whether it applies and how much. If it does, track it as its own number. It's money you've already earned, and it's easy to forget about until months after closeout.

• Record how much is held on every draw.
• Keep a running total of retainage held.
• Invoice the release the day the punch list is signed off.

Change orders change the draws

When an approved change order adds to the contract, the remaining draws (or a separate change order payment) need to pick it up. Log each change order with its amount and how it gets paid: in full on signing, added to the next draw, or spread across the remaining draws. Your revised contract total should always equal the original contract plus approved changes.

Know who owes you, every week

The question that matters most on a Friday is "who owes me money, and how late are they?" A good draw tracker answers that in one place:

• Revised contract total and how much has been billed
• How much has been received, and what's outstanding
• Which draw is late, and by how many days
• Retainage held so far

The free draw schedule in our starter pack does this math for you. It comes with a filled-in sample job so you can see it working before you set up your own.

Common mistakes

• Draws tied to dates instead of work. Weather or a late inspection and the schedule falls apart.
• Billing the draw late. If the stage is done, send it that day. The clock on payment doesn't start until you bill.
• Change orders that never hit a draw. Approved extras that nobody invoices are just free work.
• No record of retainage. It's yours; track it like it.

This is general information, not legal or accounting advice. Draw and retainage rules vary by contract, lender and state.