Construction draw request
Updated May 18, 2026
A construction draw request is a formal request for partial payment on a construction loan or owner-funded project — backed by documentation showing work completed since the last draw, materials stored, and remaining contract value.
How draws work
On construction loans (and many owner-funded projects), payment is released in stages rather than upfront. The contractor submits a draw request periodically — typically monthly, sometimes biweekly — showing what work has been completed since the last draw. The lender (or owner) reviews the request, often inspects the site, and releases the approved amount minus any retainage.
The cadence varies. Most loans cap the number of draws (often 5–7 on a residential build). The first draw usually covers site work and foundation. Mid-project draws cover framing, mechanicals, drywall, and finish. The final draw releases at substantial completion and the final retainage releases after punch list completion and final lien waivers.
What goes in a draw request
A complete draw package typically includes:
- AIA G702 Application for Payment — the one-page payment certificate.
- AIA G703 Continuation Sheet — the schedule of values with this period's progress.
- Sub invoices — backing for the work claimed in the G703.
- Conditional lien waivers from every sub and supplier billed in the period.
- Unconditional lien waivers for the prior period's payment.
- Inspection reports from the lender's inspector, if required.
- Stored materials documentation — bills of sale, delivery receipts, insurance for any materials in column F.
- Change order log — running total of approved COs.
- Photos — visual evidence of completion percentage for major line items.
The exact package varies by lender, but the principle is consistent: every dollar requested needs to tie back to documented work that's verifiable.
Common reasons draws get rejected or delayed
1. G702 totals don't match G703 totals. Arithmetic error somewhere in the package. Lender bounces the request back. Days lost.
2. Missing or amount-wrong lien waivers. Lenders routinely reject draws if a single waiver is missing or for the wrong amount.
3. Change order total in G702 doesn't match approved CO log. A CO is included in the contract sum that wasn't yet signed by the owner, or vice versa.
4. Stored materials without supporting docs. Materials billed in column F but no bill of sale or insurance. Lender holds the column F amount.
5. Inspector finds completion percentage doesn't match. G703 says framing is 85% complete; inspector says 70%. Lender adjusts the draw downward.
Each of these can delay a draw by a week or more, which cascades to subs not getting paid on time.
How Kiron pre-verifies every draw
Before you submit a draw, Ella runs every check a competent lender will run: G702 arithmetic, G703 line arithmetic, G702-to-G703 reconciliation, change order match, lien waiver completeness and amount match, stored materials backing, and progress-percentage sanity against historical trade curves. Anything that would cause a lender to bounce the draw is flagged — with the source document attached — so you fix it before submission.
The result: draws clear on first submission. Cash flow stays predictable. Subs stay happy.
Frequently asked
How often can a contractor submit draws?
Typically once a month, sometimes biweekly. Set by the construction loan or owner-contractor agreement. Some loans cap the total number of draws across the project (often 5–7 on residential).
How long does a construction loan draw take to process?
Most lenders process a clean draw within 5–10 business days from submission. Inspector schedules are usually the gating factor. Draws with arithmetic errors, missing documents, or incomplete lien waivers can take much longer — 2–3 weeks isn't unusual when documents bounce back.
What is a draw schedule?
The pre-agreed schedule of when draws will be requested and what milestones each draw represents. Typically tied to construction phases: foundation complete, framing complete, dried-in, mechanicals rough, drywall, trim/finish, substantial completion. The draw schedule appears in the construction loan documents and matches the schedule of values on the G703.
Can a contractor get paid for stored materials?
Yes, on most contracts and most construction loans — materials delivered and stored either on site or in a third-party warehouse can be billed in column F of the G703. Requirements vary by lender but typically include: bill of sale, delivery receipt, photographic evidence, and insurance covering the materials. Some lenders also require a bailment agreement for off-site storage.
What happens if a draw is rejected?
The lender returns the package with specific objections. The contractor revises the documents and resubmits. The cycle takes anywhere from a few days to a few weeks depending on what was wrong. Subs and suppliers who were counting on that draw don't get paid until it clears, which can stress relationships and even pause work.
Related terms
Clear every draw on first submission
Ella runs every check a lender will run — before you submit. Catch arithmetic errors, missing waivers, and CO mismatches in seconds.