On a well-run job you are still the bank.
Cost goes out on day one. The first draw lands weeks later, and only after somebody inspects, approves and cuts a check. The gap between those two is money you fund yourself — on a profitable job, with a client who pays on time. Most builders have never put a number on it. Enter a job below.
100 minus your gross margin.
The terms
Mobilization, permits, materials, the first sub invoices.
How slow the money moves
Now run two of these at once. The exposure stacks, and it stacks fastest in exactly the month you win more work.
How to write a draw schedule that does not fund the client
| Move | Why it works |
|---|---|
| Front-load the deposit | The deposit exists to cover mobilization and long-lead material. If it does not cover them, it is too small.Match the deposit to what you actually spend before draw one. |
| Bill on milestones, not months | A calendar draw pays you for time. A milestone draw pays you for work, and you control the milestones. |
| Make draw one early and small | A small draw at rough-in start beats a large one at rough-in complete. It resets the clock sooner. |
| Put the response window in the contract | “Payment within 10 days of draw request” is a term. “Net 30 when the bank gets to it” is not. |
| Match sub terms to draw terms | If you pay subs in 15 days and get paid in 45, you have volunteered for a 30-day float on every dollar.This one is usually the biggest single fix. |
This models the deepest point, not the whole curve. Peak exposure almost always happens early — before the first draw clears, when cost has started and cash has not. If your schedule is genuinely back-loaded, or the client is slow, the real number is worse than this. Nothing here is a substitute for a cash flow forecast across all your jobs at once.
Read the full breakdown: Residential Construction Draw Schedule: The Money You Front
Do this at scale
One job you can hold in your head. Five you cannot.
Exposure is per job, but the risk is the total. These two put the draw schedule and the bank balance in the same picture.
Billing & Collections Blueprint
Draw request tracking, AR aging and invoice status per job, so a draw never sits unsent and a slow payer is visible in week one.
Company Cash Flow Report
Every job's cash timing rolled into one view, so you know which month is tight before you sign the next contract.
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