Draw Schedule
A draw schedule is the payment plan in a construction contract that releases money in stages as the home reaches set milestones, such as foundation, framing, and drywall. Each release is a draw. It ties payments to completed work rather than paying everything up front.
Instead of paying the full price at the start or only at the end, the owner (or the construction lender) pays the builder in chunks called draws, each one released when the project hits an agreed milestone. A draw schedule is what lists those milestones and the dollar amount or percentage tied to each.
A typical schedule for an Arizona custom home releases money at signing (a limited deposit), then after the foundation pour, framing, dry-in, and drywall, with a final payment at the certificate of occupancy. Each draw is verified before it pays out. On a construction loan, the lender sends an inspector to confirm the milestone is truly done. This protects everyone. The owner does not pay ahead of the work, and the builder gets paid as real progress lands.
For example, a $700,000 build might draw 20% at framing complete. The builder finishes framing, the inspection confirms it, and that draw releases to cover the work already done and the next phase's costs. Lenders commonly hold back the final draw until the home passes its final inspection and the certificate of occupancy is issued.
In Arizona, the Registrar of Contractors limits how large a down payment a home contractor can require. That is one reason the rest of the price is split into a draw schedule. A draw schedule is not the same as an allowance, which budgets the cost of an undecided finish. The draw schedule sets when money moves. An allowance sets how much a given item costs. We build clear, milestone-based draw schedules so clients always know what they are paying for and when.
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