I’ve noticed that when we break the payments into smaller draws, it’s easier to keep everyone accountable—subs, suppliers, even ourselves.
That’s been my experience too, especially on custom builds where the details matter. I remember one project where we did big chunks and it felt like the subs got a little too comfortable—quality slipped, and it was tough to rein things back in. Smaller draws kept everyone sharp, but man, the paperwork was a beast. Haven’t tried tying draws to green milestones yet, but I love that idea. It sounds like a headache, but probably worth it if you’re serious about sustainability. For me, the sweet spot is somewhere in the middle—enough draws to keep folks motivated, but not so many that you’re drowning in admin.
Title: How do you like your construction loan funds released—big chunks or lots of little payments?
I totally get what you mean about the paperwork piling up with smaller draws. We did a remodel a few years back and tried to keep payments tight, thinking it’d keep everyone on their toes. It worked, but I swear I spent more time chasing signatures and receipts than actually making decisions about the house. Still, I’d rather deal with a bit of admin than risk folks getting lazy after a big payout. The one time we did a lump sum, things got sloppy fast—missed deadlines, corners cut, you name it. I’m with you: somewhere in the middle is probably best, even if it’s not perfect.
I’ve seen both sides of this play out on job sites. Big upfront payments? I’ve watched crews get a little too comfortable, and suddenly the pace slows down. But when the draws are too tiny, everyone’s buried in paperwork and nothing moves. Honestly, I lean toward milestone-based releases—framing done, roof on, that kind of thing. Keeps the project honest without drowning you in admin. Still, even then, someone always finds a way to grumble...
Title: How Do You Like Your Construction Loan Funds Released—Big Chunks or Lots of Little Payments?
Milestone draws are usually my go-to too, but I’ve had a few projects where even that got messy. Had a bank inspector once who’d nitpick every little thing before signing off on a draw—felt like we spent more time justifying progress than actually building. On the flip side, I’ve seen what happens when there’s too much cash up front...suddenly there’s a new truck in the parking lot and not much happening on site.
I guess it comes down to trust and how well you know your subs. Curious if anyone’s tried those newer software platforms that automate draw requests and approvals? Wondering if they actually cut down on the paperwork headaches or just add another layer of tech to babysit.
Title: How Do You Like Your Construction Loan Funds Released—Big Chunks or Lots of Little Payments?
I hear you on the milestone draws getting messy. Had a project last year where the inspector was so detail-obsessed, we joked he’d measure the paint thickness if he could. It’s wild how much time can get eaten up just prepping for those visits, and then you’re scrambling to keep the crew moving while waiting for the green light.
On the tech side, I’ve dabbled with a couple of those draw management platforms. One was supposed to “streamline everything,” but honestly, it felt like trading paperwork for screen time. The notifications and checklists were handy, but there was still a lot of back-and-forth with the bank folks who weren’t exactly tech-savvy. Maybe it’s better if everyone’s on board, but in my experience, it just shifted the bottleneck.
I’m with you on the trust thing. When you’ve got subs you know will show up and do the work, it’s tempting to loosen the reins a bit. But I’ve also seen what happens when someone gets too much cash early—suddenly there’s a new ATV at the jobsite and not much else. It’s a balancing act.
Curious—has anyone tried tying draws to more granular milestones? Like, instead of “framing complete,” breaking it down into wall framing, roof trusses, sheathing, etc.? Wondering if that helps keep things moving or just adds more hoops to jump through.
