Building a custom home involves a lot of moving pieces, and the money should move with the work. A construction draw schedule creates a clear and helpful connection between progress on the jobsite and payments made throughout the project.

RES Contracting uses a defined draw schedule as part of our construction contract. We have a total of eight draws throughout the process. Those draws are tied to specific construction milestones rather than arbitrary dates or eight equal payments.

This method helps the homeowner, the builder, and the lender understand exactly where the project stands and what each payment represents. This method results in a better experience for all parties.

Eight Draws Tied to Construction Progress

Our draw schedule follows the natural progression of building the house. Smaller draws occur near the beginning, while some of the larger draws happen during stages when there is obviously a lot more going on and our cash flow requirements increase.

Our eight draws generally follow these milestones:

• Contract deposit: A deposit is due when the construction contract is executed.
• Start of construction: This draw gets everything rolling after we have the permit and are ready to begin.
• Foundation completion: The next draw occurs after the foundation is complete.
• Roof trusses: Framing has started and the roof trusses are up.
• Framing completion: The house is completely framed, inspected, dried in, and windows are being set.
• Rough-in completion: Mechanical, HVAC, plumbing, electrical, low voltage, and the other rough-ins are complete.
• Interior paint completion: Insulation and drywall are complete, and interior painting moves the project toward cabinetry and finishes.
• Certificate of occupancy: The final draw occurs when the home reaches completion and receives its certificate of occupancy.

Each milestone represents a meaningful amount of completed work. Homeowners can see what has been accomplished rather than simply receiving a payment request because another month has passed.

Why the Draws Are Different Amounts

The eight draws are percentages of the construction contract, but they are not eight equal percentages.

Our draw schedule basically follows the cash flow of the project. Framing, rough-ins, and the stages leading through drywall and paint involve significant labor, subcontractor activity, and materials. Those draws are larger because more money is moving through the project during those phases.

Initial draws are smaller because the level of construction activity is different.

A well-structured draw schedule should reflect what is actually happening on the job. That approach creates a more transparent process and gives homeowners a better understanding of where their construction dollars are going.

How Construction Loans Fit Into the Schedule

The schedule remains the same whether a homeowner is paying cash or using a construction loan.

Homeowners using financing typically pay the initial contract deposit themselves. A bank generally needs a signed construction contract before putting the construction loan in place. Future draws can then be submitted to the lender as the house reaches each milestone.

The bank pays out funds as those draws are approved. Interest begins accruing on the amount that has actually been dispersed from the loan.

That detail matters. Homeowners are not necessarily paying interest on the entire construction loan from day one. Money gets dispersed as the home progresses, and interest begins accumulating on those dispersed funds.

Keeping the Project Moving Benefits Everyone

Schedule matters during construction for more reasons than simply getting into the new home sooner.

Construction-loan interest is one of them. Keeping selections, approvals, and other homeowner decisions moving helps us maintain the construction schedule. Delays can extend the amount of time borrowed money remains outstanding.

Getting the house completed efficiently is in everybody’s best interest.

A draw schedule supports that goal by creating clear checkpoints from contract signing through certificate of occupancy. Every payment should correspond to real progress, substantial completed work, and the next stage of construction.

That is part of how we approach custom home building: clear expectations, transparent communication, and a process homeowners can understand from beginning to end.

Building Tomorrow’s Homes Today.