Definition
A draw schedule specifies when construction loan funds are released based on completion milestones. Each draw requires lender inspection to verify work completed. Draws typically progress through foundation, framing, roof, mechanicals, drywall, interior, and completion stages.
Not sure where this fits?
Answer a few questions and we’ll open the path that fits, at the right step.
Find my pathAbout this term
Draw schedules establish percentage of funds released at specific phases: foundation, framing, roof, mechanicals, drywall, interior, and completion. Each draw requires lender inspection to verify work completed. Draw percentages correlate to actual construction costs and phases. Disputes over draw timing and amounts can delay construction. Understanding draw schedules helps manage cash flow and construction budgets.
Pro Tip
Ensure draw schedule aligns with actual construction progress. Delays in draws create cash flow problems and construction delays.
Example
A draw schedule releases 15% at foundation, 25% at framing, 20% at roof, 25% at mechanicals/drywall, and 15% at completion.