Construction Draw Schedule

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A construction draw schedule is a financial tool used by contractors with identifying percentage of completion points in the project for the bank to advance proceeds to the contractor. The construction draw schedule is instrumental in keeping the project moving along. Without good points in the schedule to draw funds, the contractor can run out of funding and the project could grind to a halt. It is essential to negotiate with the buyer and the bank for proper release points in the construction draw schedule.

This article identifies some common points of draws, issues and concerns a contractor should identify to obtain an appropriate construction draw schedule.

Points of Draw

A typical draw schedule for new construction (residential and light commercial) breaks at 20% increments. The bank’s goal is to create a reasonable set of completion points in order to minimize the paperwork. A higher frequency of construction completion points generates more draws and exaggerates the documentation process. Furthermore, it increases the fees associated with a project. Typically,

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