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Dave: You can structure a draw schedule almost any way you want subject to your lender’s approval. A few suggestions: 1. Hold back 10% retention on each draw and provide it will not be disbursed it until the prime contractor has provided lien releases (I don’t know PA law so I can’t tell you exactly what you’ll need) from all subcontractors, material suppliers and anyone else providing labor.
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With custom work such as this, the homeowner and contractor create a payment plan, or draw schedule that provides the contractor with the money they need to order these custom materials. It’s not up to the contractor to finance large material purchases such as this. This is the consumer’s responsibility.
On larger projects, the contractor may ask for a draw schedule. Here, the homeowner makes payments as the work progresses. This may be represented as a percentage or dollar value. This draw schedule should be detailed as to exactly what work is to be completed and how much and when the next draw is due.
A construction draw schedule is a financial tool used by contractors in identifying percentage of completion points in the project for the bank to advance proceeds to the contractor. IN THIS ARTICLE Schedule of Values The payment schedule disbursing the Funds View all FINANCE articles. The draw schedule is a detailed payment plan for a.
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This is a sample draw schedule to be used as a guide. Each project is unique and the builder will provide a more detailed and exact draw schedule. A Job Cost Break Down and Materials List to accompany the Draw Schedule. Please refer to list of forms. TMG advances funds for improvements only, not for demolition.
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