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Disbursement Types

Disbursing Processes

Standard Draw

Voucher/Pre-Funded Draw

One Draw Delay

Standard Draw

Initial Documentation

At the inception of the construction project, the owner and/or general contractor will need to submit the following documentation to Q-Draw:

  • Overall Project Budget
  • Owner’s Original Sworn Statement: A list of all subcontractors/suppliers the owner knows or believes will be working on the project and the estimated amount budgeted to each party.
  • Contractor’s Original Sworn Statement: A list of all subcontractors/suppliers that the general contractor knows or believes will be involved in the project and the estimated budget allocated for each party.

Standard Draw FAQ

A draw is a group of requested payouts for all parties who have worked on the project or provided materials up until the date of the draw request. Submitting more line item payouts together can expedite the processing of the draw and reduce costs. Typically, draws should not be submitted more than once every two weeks, so it is advisable to establish payment expectations with subcontractors early on.

The disbursement agreement allows for up to five draws, and extra draws are billed on a per draw basis. When a draw is requested, Q-Draw must process it and pay for a third-party inspector to complete a draw inspection as required by the lender. This cost is included in the initial fee quote to cover the standard five draws.

Our work goes beyond writing checks. Check-writing is only a small component of the work performed on your behalf. Before a check can be issued, Q-Draw must:

  • Analyze the draw request according to underwriter guidelines
  • Verify payment to subcontractors and suppliers for reimbursement requests
  • Match payout requests with property invoices and verify their relevance
  • Code each payout to a budget category
  • Order a third-party inspection
  • Compile an inspection report with photographs and submit it to the lender
  • Compile a budgeted draw report for the lender
  • Request a date down search of the property
  • Request lender funding
  • Collect lien waivers
  • Issue an ALTA-33-06 Disbursement Date Down Endorsement

Q-Draw is required to make payment directly to the party that performed the work or supplied the materials. For example, if a concrete contractor X submits a bill to the general contractor for $15,000 and $5,000 of it is for concrete supplied by Y, Q-Draw must pay $10,000 directly to X and $5,000 directly to Y. Nevertheless, Q-Draw can reimburse X if they have already paid Y for the concrete.

  • Please try to limit draw requests to no more than once every two weeks.
  • For prompt processing of your draw requests, please email them to pa*****@****aw.com, along with clear and concise invoices for each payout.
  • It’s advisable to split line item payouts so that each payee is a separate payout, as illustrated in the concrete example above.
  • If you are requesting reimbursement for payments made directly to subcontractors, laborers or vendors, make sure to include supporting documentation (at least the names and phone numbers of the vendors for which reimbursement is sought).
  • If you pay laborers who are not your employees, ensure that each one signs a waiver when they receive their check and include their contact phone number.
  • If you are making a final payout to a specific subcontractor, note on the payout request that this is a final payment. This will eliminate the need to go back and collect a final lien waiver on the final draw.
  • To meet vendor discount deadlines, submit your draw at least six days prior to the deadline.

Still have questions?

Contact Our Team

Voucher/Pre-Funded Draw and Turnaround Time FAQ

This draw method requires owner and lender approval. Note that, typically, very few banks allow this draw method since the lender is required to advance funds to Qdraw (20% - 33%) before a draw is even requested. These funds are deposited into QDraw's escrow account for disbursement as invoices are turned in.

Under the pre-funded disbursement method, a draw is an advance of funds from the lender for paying subcontractor/supplier invoices submitted by the owner or general contractor after the advance. With the pre-funded method, Q-Draw can process draws faster because some processing steps are deferred until the next draw.

The general contractor can submit a payment request to Q-Draw for a subcontractor or supplier, which must be approved by the owner. There are no limits to the number of payment requests that can be submitted. After reviewing the invoice and matching the request with a budget category, Q-Draw can disburse the funds to the subcontractor or supplier as long as subcontractor or supplier has provided the 2nd tier subcontractor or suppliers lien waivers, if any. the appropriate lien waiver is received. Q-Draw will prepare a lien waiver for the payee to sign at the time the payment is released, which may be signed in our offices. Once the previous draw’s funds have been depleted, QDraw will complete an inspection report and date down endorsement for the lender. QDraw will then request the next percentage of the loan amount to be funded to the escrow account.

The disbursement agreement allows for up to five draws, and extra draws are billed on a per-draw basis. When a draw is requested, Q-Draw must process it and pay for a third-party inspector, unless the inspection is waived a draw inspection as required by the lender. This cost is included in the initial fee quote to cover the standard five draws.

Our work goes beyond writing checks. Check-writing is only a small component of the work performed on your behalf. On each payment request where a new funding request is not required, we:

  • Analyze the draw request according to underwriter guidelines
  • Verify payment to subcontractors and suppliers for reimbursement requests
  • Match payout requests with the appropriate budget category to ensure against overpayment in a category
  • Collect lien waivers (including final lien waivers on the final draw)
    When a new funding request is required, we also:
  • Order a third-party inspection for the payment requests since the prior draw
  • Compile an inspection report complete with photographs and submit it to the lender
  • Compile a budgeted draw report for the lender
  • Request lender funding
  • Request a date down search of the property
  • Issue an ALTA 33-06 Disbursement Date Down Endorsement for the previous draw

Q-Draw is required to pay directly to the party that performed the work or supplied the materials. For example, if concrete contractor X submits a bill to the general contractor for $15,000, and $5,000 of it is for concrete supplied by Y, Q-Draw must pay $10,000 directly to X and $5,000 directly to Y. Nevertheless, Q-Draw can reimburse X if they have already paid Y for the concrete.

  • For optimal turnaround time on requests for funds, please email them to pa*****@****aw.com, along with clear and concise invoices for each payout.
  • If you are requesting reimbursement for payments made directly to subcontractors, laborers or vendors, make sure to include supporting documentation (at least names and phone numbers).
  • If you pay laborers who are not your employees, ensure that each one signs a waiver when they receive their check and include their contact phone number.
  • If you are making a final payout to a specific subcontractor, note on the payout request that this is a final payment. This will eliminate the need to go back and collect a final lien waiver on the final draw.

Still have questions?

Contact Our Team

One Draw Delay

The One Draw Delay (ODD) procedure is a modified form of disbursement that must be approved in advance by the underwriter and construction lender.

The ODD procedure is also referred to as the Trailing Waivers or 30-Day Delay disbursement. Approval of this procedure typically requires the submission of financial statements by the general contractor to the underwriter. An exception to one of the primary risk reduction disbursement procedures, ODD allows for the disbursement of funds directly to the general contractor, in contravention of the standard rule of making all payments directly to each subcontractor and supplier in the chain of work. Details of the ODD are as follows:

  • Q-Draw is authorized to make lump sum draw payments directly to the general contractor for each draw submitted prior to the last draw. The general contractor is authorized to make payments to their subcontractors and suppliers and to retain reimbursement for payments already made.
  • With each draw request, the general contractor must submit an itemized breakdown of all known subcontractors and suppliers in the chain of work.
  • Prior to the disbursement of each draw, the general contractor must submit to Q-Draw their overall waiver and the waivers of all subcontractors and suppliers from the immediately preceding draw to Q-Draw.
  • This process does not eliminate or mitigate the need for the general contractor to follow the chain of work to pay or ensure payment of all suppliers and/or sub-subcontractors and to collect waivers therefrom.
  • Waivers submitted from subcontractors, sub-subcontractors and suppliers will be notarized. Otherwise, Q-Draw will call to verify payment. In the alternative, Q-Draw can verify payment and collect waivers directly with and from each subcontractor and supplier in the chain of work.
  • The ODD procedure ceases at the final draw, at which time all final waivers (from all parties in the chain of work – the general contractor, subcontractors, sub-subcontractors and suppliers) will need to be provided in exchange for final disbursement.