Commercial guide
How to structure a remodeling draw schedule
Build payment milestones around observable progress, cash exposure, approved changes, and contract requirements.
By Tyler Thompson, residential remodeling contractor and product founder · Updated 2026-08-24
Answer first
A remodeling draw schedule should tie payment to clearly defined progress while keeping the contractor's cash exposure, client protection, change orders, and legal requirements visible.
Start with the contract and local rules
Deposit limits, lien notices, retainage, and payment timing can be regulated. The schedule must match the signed contract and applicable law; this guide is an operating framework, not legal advice.
Use observable milestones
- Mobilization and approved procurement commitment
- Demolition and verified concealed-condition checkpoint
- Rough trade completion or inspection
- Drywall or enclosure milestone
- Cabinet, finish, or equipment installation milestone
- Substantial completion, punch, and closeout
Control the commercial record
- State amount or percentage and exact milestone definition
- Separate allowances and approved changes
- Identify stored-material treatment
- Record invoice, due date, payment, and remaining contract value
- Do not invoice an unapproved change as though it were base contract