Draw & Payment FAQs

Common questions about construction draws, payment schedules, and retainage.

What is a construction draw?

It is how you get money out of your construction loan — released in stages as work is completed, rather than all at once.

Why can't I create a draw request?

**New Draw Request** only appears when the project has an expense that is loan-funded, attached to a budget line, and not already on another draw. Log the cost on **Expenses** with **Funding Source: Loan** first.

Expense-Based or Progress Billing?

**Expense-Based** bills the actual invoices you tick. **Progress Billing** bills a **% complete** per budget line. Use whichever your lender expects. If you switch between them, read the cross-mode warning so you don't bill the same work twice.

Can I bill for something I already paid?

Yes. Already-paid loan expenses are offered for reimbursement draws and carry a **Vendor Paid** badge.

What is retainage?

A percentage your lender holds back from each draw — commonly 5–10% — until the project is complete. It is why **Net Payment Due** is lower than **Total Requested**. It is held, not lost.

Does OwnerDraw send my draw to the bank?

No. It creates the G702/G703 packet and marks the draw **Packet Prepared**, which is its own bookkeeping. Emailing or uploading the packet to your lender is your step, and their decision happens outside the app.

What does Mark as Funded do?

It records that the bank released the money, with an optional **Date Funded** and **Check / Wire Number**. It does not record vendor payments — use **Mark Paid** on each expense for that.

Can I change a draw after creating the packet?

No. While a draw is **Draft** you can remove an expense with **✕** or use **Delete Draw**. Once it shows **Packet Prepared** the expense list is locked; notes remain editable.

What happens to expenses if I delete a draft draw?

Unpaid ones return to **Logged**. Ones you had marked paid keep **Vendor Paid ✓**. Amounts, receipts and waivers are untouched.

How does an earlier draw affect a new packet?

Earlier **funded** and **submitted** draws appear as previous certificates so their work isn't billed twice. Creating a PDF alone does not count as previously billed.

What if my lender rejects the draw?

Fix what they raise, regenerate the packet with **Regenerate PDF**, and send it again. OwnerDraw has no rejected status; the conversation is with your lender.