Construction Draw Schedule
Phase-based draw schedule. % of contract per phase, % complete per phase, cumulative draws.
| Phase | % of Contract | Phase Value | % Complete | Earned to Date | |
|---|---|---|---|---|---|
| $50,000 | $50,000 | ||||
| $100,000 | $100,000 | ||||
| $125,000 | $75,000 | ||||
| $125,000 | $0 | ||||
| $100,000 | $0 | ||||
| Totals | 100.0% | $500,000 | 45.0% | $225,000 |
Cumulative Earned
$225,000
45.0% of contract
Remaining to Bill
$275,000
Contract Total
$500,000
Methodology
For each phase: Phase Value = Contract × (% of Contract ÷ 100) and Earned to Date = Phase Value × (% Complete ÷ 100). Cumulative earned is the sum across phases. Always verify the % of contract column sums to exactly 100% — a draw schedule that does not total contract value is invalid and lenders will reject it.
Estimates only. Verify against your contract terms.
Frequently Asked Questions
How do I set phase percentages?
Start from your schedule of values (SOV) — the line-item budget you submitted with your bid. Each line maps to one of the construction phases (sitework, foundation, framing, roofing, MEP, finishes, closeout). Sum the cost lines per phase and divide by contract total to get that phase's percentage. Avoid front-loading too aggressively; owners and lenders push back when early phases sum to more than 25–30%.
What is a typical draw schedule for residential vs commercial?
Residential custom-home draw schedules typically use 5–7 milestones: mobilization (5–10%), foundation (10–15%), framing/dry-in (20–25%), MEP rough-in (15–20%), drywall/finishes (20–25%), final/closeout (10–15%). Commercial draws follow AIA G702/G703 schedule-of-values format with one line per CSI division and monthly billing tied to percent complete. Both require a 5–10% retainage hold until substantial completion.
When is retainage withheld?
Most contracts withhold 5–10% of every progress draw until substantial completion, then release the held amount once punch-list items are signed off (often 30–60 days after). A handful of states cap retainage by statute — for example, California limits public-works retainage to 5%, and several states require retainage to be released in stages as the project crosses 50% complete. Always check your prime contract and your subcontract for retainage terms before billing.
What is a payment application?
A payment application (pay app) is the formal request for a progress payment, almost always submitted on AIA forms G702 (the cover sheet with totals) and G703 (the line-item schedule of values showing prior, current, and to-date billings). It lists each phase or line item, the percent complete this period, the retainage held, and the net amount due. The owner's representative (architect or construction manager) signs off, then the owner pays per contract terms — typically net-30 from approval.