How To Use
The Draw Request is the fundamental document used to pay contractors their progress payments on a construction project.
The payment dates, based on percentage completion, should be worked out in advance and in the initial agreement.A constant friction point between contractor and owner relates to progress payments getting ahead or behind project completion.
For the contractor, prompt payments permit these labor-intensive projects to proceed. For owners, they are fearful that once the big payments are given, the contractor will lose interest in completing the small details so desired by the owner. Both parties have justification for their concerns.
Owners only real leverage point relates to hold backs until final sign off. Contractors’ real leverage is to get as much of the project paid up so they are not “behind” on the job financially and therefore can complete it and get out “whole.”
- Make multiple copies. Give one to each party. Be sure to keep it with the project file.