Construction Draw Schedule

VBuilt

Something that works for me.
Can change the contract amount. deposit. "Month" payment is anticipated and the percentage draw to suit the job.

Attached Files

ConstructionPayments.xls (126.0 KB, 2656 views)

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Roy Vinton
VBuilt Custom Homes
www.vbuiltcustomhomes.com

Buckknekkid

thats a great payment schedule. clients may benefit from a Gantt chart slash bar chart visual to ease the shock and let their bank follow the progress milestones.

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Project Managers, Design Builders

CDR

Thats a nice chart. Do you have one that shows the changes from change orders?

Paulie

would like to view the document but adobe reader will not support a xls document, any suggestions?

www.phbconstruction.com

RCPainting

I made it a .pdf
You might try Open Office, I am a mac user, I am sure there are other options the pc guys have.

Attached Files

ConstructionPayments.pdf (43.0 KB, 796 views)

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Cedar City, Utah Painting Company
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wallmaxx

Nothing left to be said.

Buckknekkid

You could provide a hidden cash flow portion as well. I modified the "Viper" costing to add in a cash flow monitoring function.

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Project Managers, Design Builders

brooklynite

That is a great schedule for smaller projects and good starting point. In larger projects (minimum $1M and up) that last 7 months to 2 years, something like this excel spreadsheet normally would not work as it will get too wide and each month it will get a bit wider than last month. Plus many clients require separate labor and material breakdown for tax purposes and want to know percentage completed each month. Almost everyone I have worked with also needs to see the retainage held for each line item as they may be different (usually the first trades like footings are released earlier that punchout).

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Subbill Construction - Los Angeles Home Remodeling and Construction

naptown CR

There is a potential for the customer to get ahead of the draws. As an example you have cabinets and counters in the last month of the schedule to get paid.
When do you incur the liability for the cost of the cabinets? is it when you install them or maybe 2 months before when you order them? Just to play devils advocate set's say the cabinets are an 8 week lead time for delivery. You order them in month three to have them ready for install in month 5.
The customer dies in month 4 or you have a falling out. You are obligated to pay for the caninets but may never be able to install them. A properly designed draw schedule should keep you as the contractor ahead of the expenses on the project and with the expected level of profit at any given stage just in case the project goes south for whatever reason. You should be able to walk at any time and be paid for expenses and the expected profit on the job to that date.

VBuilt

You are quite right.
I haven't been on in a while- pretty hectic.
First I would say that when I open the file that I attached I was surprised at the deposit I showed; as I recall i had opened the template and just punched in a few numbers.

I would never start a job without a minimum of 10-15% down. I explain to the clients that the funds are to cover ordering custom items far ahead off the actual draw on completion.
I have found that the draw works for me quite nicely and in the event of substantial pre-pay special orders I would address this upfront and require additional funds to cover the order.
All that being said, you correct that the possibility of letting a client get ahead on the job is always a factor to look at and adjust accordingly.

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Roy Vinton
VBuilt Custom Homes
www.vbuiltcustomhomes.com