A construction draw package is the bundle of documents a developer, general contractor, or project accountant submits to a lender at the end of each billing period to request a disbursement of construction loan funds. Get it right and the money moves. Get it wrong and the draw comes back, the project stalls, and your team spends another week hunting the same missing waiver or expired certificate that delayed you last month.
This guide gives you a complete construction draw package template, explains exactly what every lender expects to see, and walks through the most common reasons packages get rejected before they reach an inspector.
What Is a Construction Draw Package?#
A construction draw package is a submission that proves work was performed, vendors were paid or owe payment, and the project is on budget and schedule. Lenders require it before releasing loan proceeds. The specific contents vary by lender and loan type, but a standard lender-ready draw package includes the following documents.
Core document checklist:
- Draw request form or pay application cover sheet
- AIA G702 Application for Payment (or lender-specific equivalent)
- AIA G703 Schedule of Values continuation sheet
- Original cost breakdown and current SOV with all approved change orders incorporated
- Subcontractor and supplier invoices with line-item detail
- Lien waivers — conditional waivers for current period, unconditional waivers for prior periods
- Certificates of Insurance for all active subcontractors
- Approved change order log with backup
- Stored materials documentation (invoices, delivery receipts, insurance)
- Site inspection photos or third-party inspector report
- Retainage summary
- Sworn statement or subcontractor payment affidavit (varies by state and lender)
- Lender cover letter and exhibit list
Who Prepares the Construction Draw Package?#
The answer depends on project structure. On owner-developer projects, the owner's project accountant or controller assembles the package. On GC-led projects, the general contractor submits a sworn statement and pay application which the owner reviews before forwarding to the lender. On larger deals, a dedicated draw administrator or title company handles routing.
In practice, the real work falls on whoever manages the project documents — usually a project accountant, controller, or office manager who spends 2 to 4 days per draw cycle hunting invoices through inboxes, chasing subcontractors for missing waivers, and manually updating a spreadsheet that nobody else can read.
That process breaks in the handoffs. One unsigned waiver, one expired COI, one invoice that does not map cleanly to a Schedule of Values line item — and the package comes back.
How to Prepare a Construction Draw Package Step by Step#
Use this workflow as your monthly draw preparation process. Each step links to a more detailed guide below.
Step 1 — Collect all invoices for the period#
Pull invoices from every subcontractor and supplier that performed work or delivered materials during the billing period. Match each invoice to the vendor, the cost code or SOV line item, and the approved contract or change order amount. Flag any invoice you cannot match without a conversation.
Step 2 — Update the Schedule of Values#
Post the invoiced amounts against each SOV line. Calculate percentage complete, work in place, stored materials, retainage withheld, and net amount due. The G703 continuation sheet is the most-scrutinized page in the package. An inspector or lender reviewer will cross-check it against the draw request total and any change order log. See the SOV reconciliation guide for common discrepancies to catch before submission.
Step 3 — Collect and verify lien waivers#
Request conditional lien waivers from every subcontractor and supplier invoiced in this draw. Pull the unconditional waivers from the prior draw period and confirm they are all signed and dated correctly. A missing unconditional waiver from a prior payment is one of the top reasons draws get rejected. See the lien waiver tracker template for the field structure that keeps this organized.
Step 4 — Verify Certificates of Insurance#
Check that every active subcontractor has a valid COI on file. Confirm the policy period covers the current draw period and that your project is listed as an additional insured. Expired COIs can hold an entire package even when only one sub is affected. The COI tracker template gives you the column structure to catch expirations before they become blockers.
Step 5 — Reconcile change orders#
Confirm that every change order included in this draw has been formally approved, signed, and logged. Unapproved change orders in the SOV or invoiced work that does not tie to an approved change order are common rejection triggers. See the change order log template.
Step 6 — Run the gap audit#
Before you assemble the binder, work through the lender's checklist line by line. Flag every missing item, unsigned document, expired certificate, or unmatched invoice. This gap audit is the most valuable step in the process. Teams that skip it submit incomplete packages. Teams that run it fix problems before submission day rather than after.
Step 7 — Assemble the binder and write the cover letter#
Organize documents in the order your lender specifies. If no order is specified, use: (1) draw request form, (2) G702, (3) G703, (4) change order log, (5) invoice backup, (6) lien waivers, (7) COIs, (8) stored materials, (9) site photos, (10) sworn statement. Write a one-page cover letter that states the draw amount requested, the project completion percentage, any change orders incorporated since the last draw, and a summary of any open items you are disclosing proactively.
Why Draw Packages Get Rejected#
Lenders and their inspectors look for completeness and consistency. The most common rejection reasons, in order of frequency:
- Missing conditional lien waiver for current draw period
- Missing unconditional lien waiver from a prior payment period
- Expired or missing Certificate of Insurance
- Invoice amount does not match the SOV line or includes cost codes not in the approved budget
- Unapproved change order included in the G702/G703
- Retainage calculation error
- Stored materials not supported by delivery receipt or insurance certificate
- Draw total exceeds the lender's inspection percentage before inspector certifies completion
- Missing sworn statement or subcontractor affidavit (required in many states)
- Cover letter draw amount does not match the G702
Frequently Asked Questions#
How long does a construction draw take to process?#
Most construction lenders process a complete, accurate draw package in 5 to 10 business days once the inspection report is received. Incomplete packages can add 2 to 4 weeks of back-and-forth. Banks with in-house inspection teams are typically faster than those that outsource to a third-party inspector service.
What is the difference between a conditional and unconditional lien waiver?#
A conditional lien waiver states that the subcontractor waives lien rights conditional on receiving payment. It is signed before payment is confirmed and accompanies the current draw request. An unconditional lien waiver states that the subcontractor has been paid and unconditionally waives lien rights through a specified date. It is collected after the prior draw funds are disbursed. Lenders typically require both: conditional waivers for the current period and unconditional waivers for all prior periods.
What is AIA G702 and AIA G703?#
The AIA G702 is the Application and Certification for Payment form produced by the American Institute of Architects. It is a one-page summary of the total contract value, all change orders, work completed to date, stored materials, retainage, and net amount due. The G703 is the continuation sheet — a line-by-line Schedule of Values that supports the G702 totals. Together they are the most widely accepted pay application format in commercial construction. See the AIA G702/G703 guide for a field-by-field breakdown.
Can I use River if I already use Procore or QuickBooks?#
Yes. River works alongside Procore, QuickBooks, Sage, Foundation, and CMiC by ingesting exports from those systems along with your PDFs, emails, and project folders. River is the document review and assembly layer — the gap audit, trackers, and package draft — not the project management or accounting system.