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.
Related Terms
More Remodeling Terms
This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.
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