Construction Building Draw

CONSTRUCTION BUILDING DRAW REQUEST AND DISBURSEMENT AGREEMENT

This Construction Building Draw Request and Disbursement Agreement (the Agreement) is entered into between Owner: and Contractor: for the project located at Project Address:

RECITALS

WHEREAS, Owner has contracted with Contractor to perform construction work described herein (the Project), identified by Project Number: ; and

WHEREAS, disbursements of construction funds will be made in periodic draws based upon percentage completion and approved invoices; and

WHEREAS, the parties desire to set forth the procedure, certifications, and conditions under which draws will be requested and disbursed.

SCOPE OF WORK

PAYMENT TERMS

Contract Sum (Original): $. Retainage: % of each draw unless otherwise specified.

Draw Frequency and Schedule: Draws shall be submitted in accordance with the draw schedule below and shall include required supporting documentation and conditional lien waivers as specified in this Agreement.

Any undisputed payment not paid within days after approval shall accrue interest at % per month (or the maximum permitted by law), compounded monthly.

DRAW REQUEST DETAILS

Draw Number: — Amount Requested: $ — Amount Remaining on Contract: $

Period Covered From: To:

ITEMIZED SCHEDULE OF WORK AND COSTS

Provide line items for work completed in this draw. Attach additional pages if necessary.

INSPECTION, CERTIFICATIONS, AND CONDITIONS

Contractor certifies that, to the best of Contractor's knowledge, the work described above has been performed, all materials furnished have been used for the Project, and all subcontractors and suppliers associated with this draw have been paid to the extent of prior draws: I certify.

Contractor further certifies that all required conditional and unconditional lien waivers for the amounts requested are attached and that there are no known claims, liens, or encumbrances that would impair Owner’s or Lender’s interest: I certify.

Inspection Date:

TERM AND TERMINATION

This Agreement commences on Commencement Date: and terminates on Completion Date: or upon final payment and acceptance.

Either party may terminate for material breach if the breaching party fails to cure within days after written notice. Termination does not relieve the breaching party of liability for damages, indemnity obligations, or payment for completed work.

CONFIDENTIALITY

Each party shall maintain in confidence any non-public financial information and pricing terms exchanged in connection with draw requests and shall not disclose such information except to employees, lenders, or professional advisors with a need to know, or as required by law. This obligation survives termination for a period of three years.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the state identified as Governing State: , without regard to conflicts of law principles.

ENTIRE AGREEMENT

This Agreement, together with the construction contract, any approved change orders, and attached draw documentation, constitutes the entire agreement between the parties with respect to draw procedures and disbursement conditions and supersedes all prior negotiations and understandings. No amendment shall be effective unless in writing and signed by both parties.

INDEMNITY

Contractor shall indemnify and hold Owner harmless from any claims, liens, losses, or expenses (including reasonable attorneys' fees) arising from Contractor’s performance of work, failure to pay subcontractors or suppliers, or breach of the certifications contained in this Agreement.

Sign Now