Construction Financial Glossary

Draw Request Definition

A draw request is a formal document submitted by a contractor to request payment for work completed during a specific phase of a construction project. It details the percentage of work completed, associated costs, and supporting documentation for verification.

How Draw Requests Work

Draw requests are used in Progress Billing structures where payments are made in installments. The contractor submits a draw request to the project owner or lender, who reviews and approves the request before funds are released.

Best Practices for Submitting Draw Requests

Ensure all required documentation, such as invoices and progress photos, is included

Align draw requests with the project schedule and percentage of completion

Communicate with project stakeholders to prevent payment delays



Related Terms: Progress Billing, Retainage, Schedule of Values, Loan Disbursement

FAQs

How often are draw requests submitted?

A: Typically monthly or upon reaching significant project milestones.

Who reviews and approves draw requests?

A: The project owner, lender, or Construction Manager reviews and verifies the request before releasing funds.

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