A draw schedule is an agreement between the homeowner, builder, and lender in regards to when funding is disbursed. A typical draw will release funds for projects as they are finished. There are usually four to six draws in a construction loan, but the total depends on how large the building site is. Each draw calculates into percentages, with everything adding up to 100%. For example, draw # 1 may be for closing costs at 15% completion.
Below is an example of a schedule with five draws, consisting of a short listing of items that can be on it:
Draw #1 (25%) Foundation 
Plans and Specifications
Impact Fees
Demolition
Excavation
Draw #2 (20%) Rough Structure
Roofing
Structural Steel
Windows and Exterior Doors
Draw #3 (20%) Exterior /Interior
Interior and Exterior Painting
Drywall
Draw #4 (20%) Trim-out
Cabinets
Electrical
Draw #5 (15%) Closing
Clean House
Place Appliances
Final Inspection
Occupancy Permits
A builder can choose to use his own draw schedule or the draw can be modified. As long as everything on the draw is complete and checked off, the lender will release funds to the builder or contractor.
How to Schedule Draws
The first step in scheduling a draw is to sit down with your lender and discuss everything your home will need in order to be constructed. The most important thing to list is the groundwork. This will include the foundation and cement.
Next, a list of fees, permits, demolition, excavation, and everything else to do with laying the foundation is put down. Without any of this, the beginning stage cannot commence.
The second step is listing requirements for the home’s structure. Brick, plywood, mortar, nails, steel, and roofing material are things included in this draw.
Third, list items required for the exterior and interior part of the structure, such as plumbing material, paint, and drywall.
The fourth draw can include cabinets, doors, insulation, and items needed inside the home. This includes electrical wiring and water heaters.
The last step requires a thorough walk-through inspection to make sure everything is completed, working properly, and undamaged. Projects such as installing appliances and applying floor finishing are completed in this stage. This step will insure that the last draw is released to the builder and contractors.
Not every draw will be the same. It depends on the size of the home and how big or small the job is. Draws are also scheduled according to the type of construction loan the homeowner has.
After each draw is completed and checked off, the builder and contractors are paid. It is in the builder’s best interest to follow through with the construction on time and properly.
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