Construction Draw Administration Services

What owners receive with each draw review

The agreed scope starts with the schedule of values, prior applications, and the lender’s checklist. The draw file brings together:

• Pay-application review: current and previous amounts compared with the schedule of values, approved changes, and available progress documentation.
• Submission package: the advance request and supporting records organized in the lender’s required format, including AIA G702/G703 where applicable.
• Document tracker: required waivers and supporting records listed by party, billing period, and outstanding item.
• Budget reconciliation: requested, funded-to-date, and remaining amounts tracked by line item, with differences flagged for review.
• Open-item summary: questions for the owner, contractor, and lender’s inspector, together with the status of the submission.

The owner receives an organized record of the request and the items still requiring action. Field-review arrangements and reporting responsibilities are defined in the engagement; payment approval and funding remain with the authorized parties.

How a construction draw review works

1. Establish the baseline. Review the current budget, schedule of values, prior draws, and the lender’s submission requirements.
2. Reconcile the request. Compare the current application with funded-to-date amounts, approved changes, and documented progress. Flag differences that need an explanation.
3. Coordinate the supporting file. Track required waivers and documentation, and coordinate outstanding questions with the owner, contractor, and lender’s inspector.
4. Track submission and follow-up. Maintain the draw record and open-item list so the owner can see what has been submitted and what still needs attention.

For the full cycle from pay application to funding, read our guide to construction draws in Texas. The waivers we collect on every draw are the four statutory Texas lien waiver forms, free to download.

For the documents commonly reviewed during a site visit, see our construction draw inspection checklist. For the wider reporting role, explore owner’s representation.

How we check the documents behind a construction draw

A draw request should explain what changed since the last application and how the current amount relates to the project budget. The review focuses on five connected records:

1. Pay application and schedule of values. Compare line-item amounts, prior applications, approved changes, and documented progress. Where AIA forms are required, check that the G703 detail agrees with the G702 summary. Our G702 and G703 guide explains how the forms fit together.
2. Waiver and payment records. Track the required documents against the parties and payments covered by the request. Flag missing or inconsistent records for resolution rather than treating a complete-looking folder as approval to pay.
3. Stored materials and retainage. Check supporting invoices and other records against the contract and lender’s requirements, and flag potential duplicate billing. Track retainage separately using the project’s applicable requirements; do not assume one percentage or release rule applies to every project.
4. Budget and approved changes. Reconcile approved changes and funding records against the project budget, flag differences, and track unresolved items for the owner’s review.
5. Lender submission and follow-up. Organize the application, available inspection report, supporting documents, updated budget, and open-item summary for the required submission. Track questions and revisions without promising a funding date.

For example, if an application includes a change that is not recorded as approved, the review should flag the difference and request the supporting decision before treating it as part of the approved budget. The record should show what was requested, what was resolved, and what remains open.

Our pencil-requisition example shows why line-item corrections must carry through the payment summary.

What to bring to your first draw administration review

Bring the latest schedule of values, current pay application, prior approved draw, budget, approved change orders, and any lender checklist or outstanding questions. If the project is already underway, funded-to-date records help establish the starting point. We will identify which additional documents are needed for the agreed scope.

Houston multifamily draw administration experience

Our Galleria Houston 8-unit townhome case study describes lot-by-lot requisitions, waiver tracking, and lender/owner coordination for a development with multiple investor entities. It illustrates how a draw file can be organized around the actual project structure.