ContractorHandbook

Draw Schedule for a $350,000 Job

Each progress draw

$70,000.00

10% deposit at signing, four equal progress draws, 10% final payment at completion, no retainage held.

It does not stop at a number.

When the figures look right, the payment schedule downloads as a real PDF with your business details on it, built inside your own browser. Nothing you type is uploaded anywhere.

Contractdraw 1draw 2draw 3draw 4signing to completioncontract, less deposit and final, split evenly across the draws
A draw schedule is cash flow written down before the job starts. Deposit and final come off the top, the rest splits evenly across the milestones, and retainage comes out of each draw rather than the end.

How that number is worked out

These are the figures this page was built with and every line the calculator produces from them. Change anything above and all of it moves.

  • Contract amount350000 $
  • Deposit at signing10 %
  • Number of progress draws after the deposit4
  • Final payment at completion10 %
  • Retainage held from each draw0 %

Each progress draw$70,000.00

Deposit at signing$35,000.0010%
Draw 1$70,000.00cumulative $105,000.00, 30% of contract
Draw 2$70,000.00cumulative $175,000.00, 50% of contract
Draw 3$70,000.00cumulative $245,000.00, 70% of contract
Draw 4$70,000.00cumulative $315,000.00, 90% of contract
Final payment at completion$35,000.0010%

The draw schedule this produces

Deposit at signing1
Progress draw 11
Progress draw 21
Progress draw 31
Progress draw 41
Final payment at completion1

Number of progress draws compared

More draws means smaller amounts more often, which is usually easier to collect and always easier to survive.

Number of progress drawsEach progress draw
2 draws$140,000.00
3 draws$93,333.33
4 draws$70,000.00
5 draws$56,000.00
6 draws$46,666.67

What else matters here

Thirty five thousand at signing, four draws of $70,000, thirty five thousand at completion. Eight draws pays $35,000 a time.

A job this size is often funded by a construction loan, and on a lender funded job the customer is not the one who releases the money. A title company or the lender's disbursement desk is, and their process usually runs: application submitted, an inspector visits to confirm the percentage claimed, the draw is approved against the budget the lender already holds, and funds are disbursed some days after that.

Two things follow from it. The first is that the lender's budget, not your contract, decides which line each dollar comes out of, so if your schedule of values does not match their budget lines the application is going to be reworked before it is paid. Get their form and their budget breakdown before you write yours. The second is that the deposit often does not exist on a lender funded job, because loans usually fund in arrears, and a contractor who priced the job assuming $35,000 up front will finance the first phase without meaning to.

What this calculator assumes

  • Several states cap the deposit a residential contractor may take, some at 10 percent and some at a flat dollar figure. Check your own state before you write a bigger number here.
  • Draws should follow milestones you can point at, not dates. "On completion of rough in inspection" is collectable. "On 15 October" is an argument.
  • A final payment under 10 percent gives the customer no reason to sign off, and one over 20 leaves you funding their job.

Questions people ask

What is a normal draw schedule for a $350,000 job?

A 10 percent deposit of $35,000, four progress draws of $70,000 each, and a $35,000 final payment. Eight monthly draws of $35,000 suits a longer build better.

How do draws work on a construction loan?

The lender or a title company releases funds, not the homeowner. An inspector confirms the percentage claimed, the draw is checked against the lender's own budget lines, and money is disbursed afterwards. Match your schedule of values to their budget before the first application.

Is a 10 percent deposit allowed?

Usually, but several states cap what a residential contractor may take up front, some at 10 percent and some at a flat dollar figure. Check your own state before writing a bigger number, because an over the cap deposit can be a license issue rather than just a contract dispute.

Different numbers?

The payment schedule calculator takes any dimensions you like and hands back the same list.

Other common sizes