Draw Schedule
Learn about draw schedules in Canadian construction financing — what they are, how they work, and why they reduce risk.
July 28, 2025
What is a Draw Schedule?
A draw schedule is a payment plan used in construction financing that outlines when and how funds will be released to the builder or contractor as work progresses.
Why Draw Schedules Matter in Real Estate
In Canadian construction, draw schedules help lenders control risk by tying disbursements to project milestones verified by inspections.
Key features:
- Payments released at defined stages (e.g., foundation, framing)
- Reduces risk of incomplete or faulty work
- Ensures project cash flow aligns with progress
Understanding draw schedules helps developers and contractors manage expectations and maintain project timelines.
Example of a Draw Schedule in Action
The construction loan included a draw schedule releasing funds after each stage was inspected and approved by the lender.
Key Takeaways
- Ties construction funding to progress milestones
- Reduces lender and owner risk
- Requires inspections to trigger payments
- Helps maintain cash flow discipline
- Common in construction loans and contracts
Related Terms
- Construction Loan
- Holdback (Construction Financing)
- Hard Costs (Construction)
- Soft Costs (Construction)
- Permanent Financing
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The Agency’s Mauricio Umansky (left) and Rennie’s Greg Zayadi (right).
An overview of the 23 properties. (Chartwell Retirement Residences)
10355 King Boulevard in Surrey. (Arcadis, Wesgroup Properties)
Renderings from the NE and SE corners of Civic District. (Arcadis, Wesgroup Properties)
Renderings from the SW and NW corners of Civic District. (Arcadis, Wesgroup Properties)
