Draw schedules & getting paid on time
5 min read
On a well-run job, money flows as predictably as the work. A draw schedule ties each payment to completed, verifiable milestones — protecting the owner from paying for work that isn't done, and protecting you from financing the project out of your own pocket.
Never finance the job yourself
On a well-run job, money flows as predictably as the work. A draw schedule ties each payment to a completed, verifiable milestone — foundation poured, framing up, rough-ins passed inspection — rather than to a date on the calendar. That protects the owner from paying for work that isn't done, and protects you from financing the project out of your own pocket while you wait.
Collect a deposit or first draw large enough to cover your early material and mobilization costs, so you're never funding the start. The goal is simple: your cash in the job should never get too far ahead of the money coming back to you.
Waivers, retainage and the final check
Exchange lien waivers with every payment — you sign one as you're paid, and you collect them from your own subs before you pay them, so no one can later claim against a job that's already been paid for. And understand retainage: the owner may hold back 5–10% until completion, so price and cash-flow the job knowing that slice of your profit arrives last.
Finally, keep the last payment meaningful. A final check that's tied to a clean, completed punch list keeps everyone — including you — motivated to truly finish the job rather than drift away at 95%.
Key takeaways
- Tie each draw to a completed milestone — foundation poured, framing up, rough-ins passed — not to a date on the calendar.
- Collect a deposit or first draw that covers your early material and mobilization costs, so you're never funding the start yourself.
- Exchange lien waivers with each payment — you sign one as you're paid, and collect them from your own subs before you pay them.
- Understand retainage — the owner may hold back 5–10% until completion, so price and cash-flow the job knowing that money arrives last.
- Keep the final check reasonable — a meaningful last payment tied to a clean punch list keeps everyone motivated to truly finish.