What Is Draw Schedule?
A draw schedule is a payment plan that releases funds to a contractor in installments tied to project milestones, rather than all upfront or all at the end.
Example
A typical draw schedule might release 10% at signing, 30% at demo/rough-in, 30% at drywall, and the remaining 30% at final completion.
Why It Matters
Paying too much upfront increases your risk if a contractor doesn't finish the job — tying payments to completed, inspected milestones protects both sides.