I totally get the paperwork headache with smaller payments, but honestly, I lean that way too. I’ve had a couple projects where waiting for a big milestone just slowed everything down—subs would start juggling other jobs and then scheduling got messy. The extra admin is annoying, but I’d rather keep everyone moving than risk delays. I use a spreadsheet to track it all... not glamorous, but it keeps things clear. Sometimes feels like herding cats, but at least nobody’s left hanging.
Sometimes feels like herding cats, but at least nobody’s left hanging.
That’s exactly it—it’s a juggling act, but at least you’re not stuck waiting on someone who’s disappeared to another job. I’ve run into the same issue with big milestone payments. On one retrofit, we waited weeks for the next draw and by the time the funds hit, half the crew had picked up side work. Trying to get everyone back on site was a nightmare. I get why lenders like big chunks—less admin, fewer inspections—but in practice, it just doesn’t fit the way most subs operate.
I’m curious: have you noticed any difference in how smaller payments affect your relationships with subs? I’ve found that when folks know they’ll get paid quickly for each phase, there’s less tension and more willingness to go the extra mile. It’s not just about cash flow—it’s about trust. That said, I’ve had a couple of subs complain about the paperwork too. Sometimes I wonder if there’s a sweet spot—like, not every nail gets its own line item, but not waiting till the roof’s on to pay everyone either.
And spreadsheets... yeah, they’re not glamorous, but I haven’t found anything better unless you want to pay for fancy project management software. I tried one of those apps once—ended up going back to my old Excel doc after a month. Too many bells and whistles for what I needed.
Ever had a lender push back on your payment schedule? I’ve had to negotiate before and it always feels like a tug-of-war between what works on paper and what actually keeps a build moving.
Honestly, I’m right there with you on the paperwork overload. When we started our build, I thought smaller payments would keep things smoother, but the amount of forms and signatures got wild fast. Still, the subs seemed happier knowing they weren’t waiting forever for a check. I do wonder if there’s a way to streamline it without losing that trust factor. Has anyone tried batching phases together—like framing and rough-in as one draw? Curious if that keeps both sides happy or just adds more confusion...
HOW DO YOU LIKE YOUR CONSTRUCTION LOAN FUNDS RELEASED—BIG CHUNKS OR LOTS OF LITTLE PAYMENTS?
I hear you on the paperwork mountain. I’ve tried batching phases before—framing and rough-in as one draw sounded good in theory, but it got messy when one trade finished early and another lagged behind. Subs started grumbling about waiting on each other. In my experience, smaller draws are a pain with forms but keep the peace. There’s always a trade-off, I guess.
BIG CHUNKS OR LITTLE PAYMENTS—WHICH ACTUALLY WORKS BETTER?
I’ve tried batching phases before—framing and rough-in as one draw sounded good in theory, but it got messy when one trade finished early and another lagged behind. Subs started grumbling about waiting on each other.
That’s exactly why I lean toward bigger draws, even if it ruffles a few feathers. In my experience, the more you nickel-and-dime the process, the more you end up babysitting subs and chasing paperwork. Sure, some trades might have to wait a bit, but if you’re clear upfront about payment schedules, most pros will deal. The constant back-and-forth with banks over tiny draws just drags things out and kills momentum.
I get that smaller payments “keep the peace,” but honestly, I’d rather deal with a couple of grumpy subs than have my project bogged down by endless admin. At the end of the day, time is money—especially on high-end builds where delays cost way more than a few unhappy phone calls. Just my two cents...
