How to Bill Progress Draws on a Multi-Week Project
A multi-week project should be billed in three to four stages: a materials deposit at signing (typically 25–50%), one or two milestone draws tied to verifiable stages rather than dates, and a final balance at completion or walkthrough. Each draw should name the milestone that triggers it, be invoiced the day that milestone is reached, and be small enough at the end that the final payment isn't the customer's only leverage over a punch list.
Why draws exist at all
On a multi-week job you buy the materials, you pay yourself, and the customer sees nothing finished for days or weeks. Without progress payments, the contractor is financing the project — at a scale that can be most of a month’s cash.
Draws aren’t distrust. They’re how the money moves at roughly the same speed as the work.
A structure that works
- Materials deposit at signing — 25–50%, covering what you buy before day one
- Milestone draw — at a verifiable stage: base compacted, framing inspected, structure standing
- Second milestone draw, on longer projects
- Final balance at walkthrough — 10–20%
Tie draws to milestones, never dates
“Due at framing inspection” is a fact. “Due on the 15th” is an opinion.
Outdoor work loses days to rain constantly, and a date-based schedule turns normal weather into a payment dispute. A milestone is something both parties can look at.
Invoice the day the milestone happens
The draw is easiest to collect the moment the customer can see what it paid for. Base compacted, photos sent, invoice attached — that sequence gets paid same-day far more often than an invoice that arrives on Friday describing Tuesday’s work.
Keep the final payment modest
A large final balance hands the customer disproportionate leverage over a punch list — and punch lists always exist. 10–20% is enough to keep everyone motivated and small enough that a slow final payment isn’t a cash emergency.
Put the stop-work clause in the contract
One sentence: work pauses if a scheduled draw is not paid within X days, and the schedule resets accordingly. Agreed at signing it’s a term; invoked without it, it’s a threat — and continuing to build while unpaid only deepens the hole.
Change orders are their own invoices
Additions mid-project should be quoted, approved in writing, and invoiced separately rather than rolled into the final balance. A final invoice larger than the contract price is probably the most common cause of a payment fight in residential construction.
Frequently asked questions
How big should the deposit be?
Enough to cover the materials you buy before starting, usually 25–50%. It isn't about trust — it's that lumber, pavers, block, or a custom kit are purchased weeks before completion, and a contractor funding that out of pocket is running a lending business by accident.
Should draws be tied to dates or milestones?
Milestones, always. 'Draw due at framing inspection' is verifiable and fair to both sides; 'draw due on the 15th' invites an argument about whether enough progress happened. Weather delays are normal in outdoor work and a date-based schedule punishes both parties for them.
How much should the final payment be?
Small enough that you're not depending on it, large enough that the customer still cares about the punch list — roughly 10–20% is the usual balance. A 50% final payment gives a customer enormous leverage over trivial items.
What if a customer refuses to pay a draw mid-project?
Stop work, in writing, per the terms your contract already states. Continuing to build while unpaid converts a payment problem into a much larger one — and a stop-work clause agreed at signing is what makes pausing a contractual step rather than a threat.