Construction Draw Schedule

A construction draw schedule is a financial tool used by contractors in 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.

The following articles identify and illustrate the use of a construction draw schedule.  These are articles are located in the construction industry section of this website.

Completed Contract Method of Accounting in the Construction Industry

Completed Contract Method

The completed contract method of accounting recognizes revenue and the associated costs once the project is complete.  This is one of the two popular accounting methods used in the construction industry.  For residential contractors, the completed contract method may have a slight tax advantage by deferring revenue recognition but is generally not considered the best method of accounting in the construction industry. 

Construction Draw Schedule

Construction Draw Schedule

A construction draw schedule is a financial tool used by contractors in 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. 

Follow by Email
Facebook
Google+
https://businessecon.org/tag/construction-draw-schedule">
Twitter
LinkedIn