Learning · Money milestones
Financing & draws (education)
Educational overview of construction draws, contingencies, and payment discipline for remodel and addition projects. Not a loan product, credit offer, or financial advice.
Board disclaimer
The Board of Project Stewardship does not originate mortgages, HELOCs, construction loans, or contractor financing. Nothing here is a recommendation to borrow. Talk with your own lender, CPA, or attorney for product-specific questions.
Pair this page with change orders & allowances, bid comparison, and contractor contract basics.
Steward payment habits
- Tie payments to written milestones (permits issued, dry-in, rough-in passed, trim, punch) — not calendar vibes.
- Understand whether your funding source uses lender draws, private draws, or cash progress payments.
- Keep a contingency reserve separate from finish allowances; document who may authorize spending it.
- Never pay large deposits to unlock work from firms you have not L&I Verified.
- Align change orders with draw requests so funding matches signed scope changes.
- Retain a final holdback until punch list and closeout documents are complete.
- Ask how materials stored off-site are billed and insured before paying for them.
- If a lender is involved, ask who schedules draw inspections and what photos/docs they require.
Financing & draws FAQ
Does the Board sell loans or endorse lenders?
No. This page is educational literacy about draws, contingency, and payment milestones. The Board does not offer loan products, broker credit, or promise approval.
What is a draw?
In construction lending, a draw is a progress payment released after documented work milestones (often with inspection). Exact rules come from your lender and contract — not from the Board.
How much contingency should I keep?
The Board does not invent a universal percentage. Ask each firm how allowances, change orders, and contingency interact in writing, then keep owner reserves for discoveries and AHJ corrections.