When finances are provided by a banking institution or similar type of lender, the draw schedule is a binding agreement between the builder, the lender, and the contractor. There are many things taken into consideration when developing a draw schedule, and it’s important to have a clear understanding about them. It’s the how and when construction funds are distributed for a project. In this post, we’ll show you exactly what you need to know about construction draw schedules and how to make them work best for you and your business.Ī construction draw schedule is a form of construction business financing. A draw schedule in construction reduces the issues associated with this and reduces the risk of late payments which frequently plague construction professionals. They help you have a clear understanding of how much you’ll be making by the end of each project and, since construction projects are often delayed by unexpected circumstances or situations, cash flow issues can happen. There are many benefits to having a draw schedule when doing construction projects. If you’re in the business of residential or commercial real estate construction - or are looking to move into this area - you’ll need to have a clear understanding of construction draw schedules.
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