What is a construction draw schedule?

A draw schedule is the written plan for when a contractor may request each project payment and what completed work supports it. It belongs in the contract, not in an informal text thread. A useful schedule names the phase of work, the amount due, the condition for billing, and the record both parties will use to confirm that condition.

There is no universal “right” number of draws or percentage due at signing. The old version of this article recommended a 15–20% signing payment for residential work. That is unsafe advice for California home improvement jobs: the California Contractors State License Board (CSLB) says a down payment cannot exceed $1,000 or 10% of the contract price, whichever is less, and that progress payments cannot exceed the value of work performed, apart from the permitted down payment. Rules vary by jurisdiction and contract type; have a qualified local professional review your schedule.

Build the schedule from the actual job

Start with the signed scope and a cost forecast, then work through these questions with the owner and any lender:

  1. What work defines each phase? Use terms that can be observed: demolition complete, a specified rough inspection passed, drywall installed, finishes completed, or punch-list items closed. Describe the work and materials, not just a calendar date or a vague label such as “halfway done.”
  2. What is due for that phase? Put the amount in the written payment schedule and make the total reconcile to the contract price. Check local restrictions before asking for any signing payment or progress payment.
  3. What proves the condition was met? List the inspection result, dated photos, approved quantity, delivery record, or other document your contract calls for. Identify who reviews it and when an invoice can be submitted.
  4. What happens if the plan changes? Document a scope, price, or payment-schedule change before the related work proceeds. CSLB says California home improvement changes must be written and signed; its contractor guide includes a progress-payment worksheet.
  5. How does closeout work? State what constitutes substantial completion, which punch-list items remain, what documentation is due, and when final payment is requested. Follow the contract and applicable law rather than a generic rule that the final draw must be a fixed percentage.

A lender-financed project may have its own inspection, draw-request, and release procedure. Get those requirements before finalizing the schedule; do not assume the owner, lender, and subcontractors all use the same trigger.

Draw schedule, progress billing, and AIA forms

A milestone draw schedule ties payment requests to defined job phases. Progress billing commonly uses a schedule of values and periodic applications showing work completed, prior payments, changes, and retainage. The American Institute of Architects describes G702 and G703 as forms for a contractor's payment application and continuation sheet; their use depends on the contract. These are different ways to document payment, not interchangeable labels that override your contract or local law.

A GC demo test for draw-management software

Use a sample job with a signed scope, one completed phase, one pending inspection, and a change order. Ask each vendor to show the workflow in the plan it is quoting:

  1. Create the draw schedule and show that its amounts reconcile to the contract.
  2. Attach the completion evidence to one phase. Ask who can mark it ready to invoice and what happens if the inspection is not yet approved.
  3. Add a signed change order. Show how it changes the contract amount, the remaining draw schedule, and the client-facing record.
  4. Generate an invoice or payment request. Check the amount, attachments, recipient preview, approval step, send history, and paid or disputed status.
  5. Export the schedule, change history, invoices, and supporting documents for the job. Confirm what remains accessible if you leave the platform.

Opsite's current pricing page lists Draw Management and Smart Invoicing on Starter. Its feature page describes those job records. Those descriptions do not establish that an inspection automatically updates a draw, that an invoice is sent in five minutes, or that every lender format is supported. Ask the team to show your exact review and billing sequence live.

Common draw-schedule questions

Should a GC front-load the payments?

Do not use a universal percentage. Forecast the job's cash needs, then set a written schedule tied to the value of completed work and the rules that apply to the project. For California home improvement work, review the CSLB down-payment and progress-payment guidance above before signing.

Can a draw be due on a date instead of a milestone?

The contract may include timing as well as scope, but a date alone does not tell the owner what work supports the payment. Define the completed work, evidence, amount, and review process in writing. Have counsel review unusual payment structures.

What if an inspection delays a draw?

Check the contract and any lender procedure. Record the inspection status, explain the schedule impact to the owner, and document any approved scope or payment change before relying on a revised draw amount.

Want to test your own draw-to-invoice handoff? Request a contractor workflow fit review. Bring a redacted draw schedule and one change order; we can show what Opsite records and where a person must review the result.

This article is general information for contractors, not legal or financial advice. Payment and contract requirements depend on location and project type.