How Long Does It Take to Get a Construction Draw?

Quick Answer

A construction draw—the process of requesting and receiving a disbursement from your construction loan—typically takes 5–15 business days from the time you submit a draw request to when funds hit your account. The timeline depends on your lender's inspection requirements, title company involvement, and whether your draw request is complete and accurate.

Construction Draw Timeline

Stage	Timeline	What Happens
Draw request submission	Day 1	Builder submits request with documentation
Lender review	Days 2–3	Lender reviews documentation for completeness
Inspection scheduling	Days 3–5	Lender orders third-party inspection
Site inspection	Days 5–8	Inspector verifies work completion percentage
Inspection report review	Days 7–10	Lender reviews inspection findings
Title update (if required)	Days 8–12	Title company confirms no new liens
Fund disbursement	Days 10–13	Lender approves and releases funds
Funds received	Days 12–15	Wire or ACH transfer completes

What Is a Construction Draw?

Construction loans don't disburse the full loan amount upfront. Instead, funds are released in stages—called draws—as construction milestones are completed. This protects the lender by ensuring money is only released for work that's actually been done.

A typical construction project has 4–6 draws tied to completion milestones:

Draw Number	Typical Milestone	Percentage of Loan
Draw 1	Foundation complete	15–20%
Draw 2	Framing complete	20–25%
Draw 3	Rough-ins complete (plumbing, electrical, HVAC)	15–20%
Draw 4	Drywall and interior finishes	15–20%
Draw 5	Final completion	15–20%
Retainage	Release after final inspection	5–10%

Required Documentation for Each Draw

Incomplete documentation is the number one cause of draw delays. Each draw request typically requires:

• Draw request form (AIA G702/G703 or lender-specific form)
• Lien waivers from the general contractor and all subcontractors paid in prior draws
• Invoices from subcontractors and material suppliers for current work
• Updated budget showing costs to date vs. remaining budget
• Progress photos documenting completed work
• Change order documentation if the scope has changed since the last draw

Factors That Speed Up or Slow Down Draws

Common Delays

• Incomplete lien waivers: If a subcontractor hasn't signed their lien waiver from a previous draw, the lender will hold the next draw until it's received.
• Inspection discrepancies: If the inspector finds that work completion doesn't match the draw request percentage, the draw will be adjusted or denied.
• Budget overruns: If costs are tracking above the original budget, the lender may require additional equity or a revised budget before releasing funds.
• Title issues: If a mechanic's lien or judgment has been filed against the property, the title company will flag it and the draw will be held.
• Missing permits: Lenders verify that required building permits are in place for completed work.

Ways to Speed Up the Process

• Submit complete draw packages with all documentation the first time—partial submissions add 3–5 days.
• Collect lien waivers proactively from subcontractors before submitting your draw request.
• Schedule the inspection early: call the lender's inspection company as soon as work is ready rather than waiting for the lender to initiate.
• Maintain a clean budget: track costs carefully and communicate changes before they become problems.
• Build relationships with your lender's draw administrator—they can flag issues before they cause formal delays.
• Use construction draw management software like Buildertrend or Procore to streamline documentation.

Retainage: The Final Draw

Most construction loans hold back 5–10% of each draw as retainage, which is released only after the project is fully complete and passes final inspection. The retainage release typically takes 15–30 days after:

• Certificate of occupancy is issued
• Final lien waivers are collected from all parties
• A final inspection confirms 100% completion
• The title company issues a final title update

Construction Draw Fees

Be aware that each draw may incur fees:

• Inspection fee: $100–$300 per draw
• Draw fee: Some lenders charge $50–$150 per draw
• Title update fee: $100–$250 per draw
• Wire transfer fee: $25–$50 per disbursement

These fees add up over the life of a project, so factor them into your construction budget. With 5–6 draws, inspection and draw fees alone can total $1,000–$2,500.