What is a draw request?

A draw request is a request to be paid for construction work completed during a period, sent to a construction lender or to the project owner. It lists each budget line's progress, the amount due this period after retainage or holdback, and backup such as invoices and lien waivers.

How it is put together

A draw is measured against the schedule of values. For each line it shows:

  • the scheduled value, plus approved change orders
  • work billed on previous draws
  • work this period
  • completed to date and percent complete
  • balance to finish
  • retainage or holdback

In the US, many owners and lenders use the AIA G702 and G703 forms or a lender's own layout. Lenders often send an inspector to confirm progress before releasing funds.

Worked example

One budget line, framing, with 10% holdback on this period's work:

FramingAmount
Scheduled value$60,000
Previous draws (30% complete)$18,000
This period (now 50% complete)$12,000
Completed to date$30,000
Balance to finish$30,000
Holdback: 10% of $12,000- $1,200
Due this draw$10,800

Common mistakes

  • Billing ahead of progress. An inspector who finds framing 40% complete, not 50%, will cut the draw or return it.
  • Missing backup. Every billed line should have its invoices, and the lender may require lien waivers or a statutory declaration.
  • Figures that don't tie to the budget. Completed to date plus balance to finish must equal the revised scheduled value on every line.
  • Leaving out approved change orders, or billing ones that aren't approved yet.

Related terms

  • Schedule of values (SOV): A schedule of values (SOV) is a breakdown of a construction contract or loan budget into line items, each with a dollar value, that together add up to the contract sum.
  • Retainage (holdback): Retainage is a percentage of each progress payment that the owner or contractor holds back until the work is complete, to protect against unfinished work and unpaid subcontractors.
  • Lien waiver (statutory declaration): A lien waiver is a document in which a contractor, subcontractor or supplier gives up its right to file a lien on a property for amounts it has been paid.
  • Change order: A change order is a written amendment to a construction contract that changes the scope of work, the price, the schedule, or all three, agreed by both parties.

Further reading