What is a draw schedule?

A draw schedule is a payment plan that releases contractor payments as defined project milestones are completed and verified, rather than on fixed dates. It protects you from paying for work that hasn't been done.

How much should the first contractor draw be?

Keep it small — often around 10% for mobilization and initial materials. Avoid large up-front payments; tie the bulk of the money to completed, inspected milestones and hold a final retainage until the punch list is done.

Free template

Contractor Draw Schedule Template (Free)

Pay for work that's done and inspected — never ahead of it.

Quick answer

A draw schedule ties contractor payments to completed, verified milestones rather than dates — protecting you from paying ahead of the work. A typical flip draw schedule releases money after demo, rough-ins, drywall, finishes, and final completion, with a retainage held until the punch list is done. Use the example structure below.

A draw schedule is the payment backbone of a contractor agreement. The principle is simple: release each payment only after a defined milestone is complete and verified. This keeps the contractor motivated and your capital protected. Adjust the percentages to your project.

Example draw schedule

Deposit / mobilization: 10% (small — covers initial materials)
After demo & rough structural: 20%
After rough-ins (electrical, plumbing, HVAC) + inspection: 20%
After drywall & paint: 20%
After finishes (kitchen, baths, flooring, trim): 20%
Final completion & punch list (retainage): 10%

Each draw should require

Milestone verified complete (photos or walkthrough)
Passing inspection where applicable
Signed lien waiver for the payment
No outstanding quality issues from the prior phase

How to use it

Keep the upfront deposit small — large up-front payments are a common way flippers get burned.
Walk the milestone (or review photos) before releasing each draw.
Hold the final retainage until the punch list is fully done.
Attach the draw schedule to your contractor agreement.

Skip the spreadsheets — do it in FlipOS

FlipOS builds your scope, budget, draw schedule, and deal analysis digitally and keeps them tied to each project. 14-day free trial, no credit card.

Get started free

Frequently asked questions

What is a draw schedule?: A draw schedule is a payment plan that releases contractor payments as defined project milestones are completed and verified, rather than on fixed dates. It protects you from paying for work that hasn't been done.
How much should the first contractor draw be?: Keep it small — often around 10% for mobilization and initial materials. Avoid large up-front payments; tie the bulk of the money to completed, inspected milestones and hold a final retainage until the punch list is done.