Custom Home Construction Draw Schedule: Milestones, Amounts, and Documentation

What a Draw Schedule Does

A construction draw schedule defines what work corresponds to each payment milestone, and roughly how much of the contract each milestone represents. It helps everyone involved (builder, owner, and lender) track project progress against money released.

Draw schedules are common on construction-loan projects because lenders need them to manage inspection and disbursement timing. But they are also useful on direct-client projects as a shared reference for when payment requests will go out and what they'll cover.

Important: If your project uses a construction loan, confirm the specific format and milestone language your lender requires before finalizing your draw schedule. Each lender may have different documentation requirements, inspection standards, and funding timelines.

What to Include in Each Draw Line

A functional draw schedule typically includes:

1. Draw number: Sequential, starting at 1. Useful for referencing in correspondence.

2. Phase or milestone description: Be specific. "Foundation: footings, stem walls, slab poured and cured" is more useful than "Foundation." The inspector will use their own language; aligning yours with theirs reduces friction.

3. Estimated completion date: A specific target date, not a range.

4. Draw amount: The dollar amount for this milestone, tied to your cost breakdown.

5. Cumulative total: Running total of all amounts funded to date.

6. Percentage of contract: What share of the total contract this draw represents.

7. Inspection required: Whether this draw requires a third-party inspection before funding.

Common Milestone Names

These milestone names are commonly used in residential construction and are generally recognizable to lenders and inspectors, though terminology varies by region and lender:

• Foundation complete (footings, walls, slab)
• Framing complete (walls, roof structure, sheathing)
• Rough-in complete (electrical, plumbing, HVAC rough)
• Insulation and drywall hang
• Drywall finish and paint
• Finish work (cabinets, trim, doors)
• Final completion (punch list cleared, certificate of occupancy)

Retainage

Many construction loans hold back a percentage of each draw (commonly 10%) as retainage until substantial completion. If your loan has retainage terms, build it into your schedule. Your final draw line should reflect the accumulated retainage release and note it explicitly.

Getting Feedback Before the Loan Closes

If your project involves a construction loan, submitting a draft draw schedule to the lender's construction department before closing can save time. Most lenders will flag format issues or milestone language problems before the loan closes, which is far easier to resolve than after a draw gets rejected.

Organizing the Supporting Documentation

The draw schedule itself is just the outline. Each milestone also needs the supporting documentation that goes with it: phase photos, lien waivers from subs and suppliers, budget reconciliation, change orders, and any required inspection reports.

Keeping that documentation organized by phase, so it is ready when the draw goes out, is one of the workflows Builtly is being built to help with.

Early Access

Builtly is being built for the draw-readiness workflow.

Organize phases, lien waiver status, progress photos, and budget information in one place so you can see what is missing before a payment request goes out. Personal onboarding, no credit card required.