This discussion is presented as a matter of business management. Any action on your part should be discussed with your legal counsel. Builder-Resources.com is not a legal advisor, and is not practicing law by discussing this business document. Please refer to the Builder-Resources.com site disclaimer.
The draw request form shown accomplishes several things.
First, it makes a demand for the contractual amount due the Builder at a certain stage or milestone, as defined in the contract.
Second, it documents the additions and subtractions to the contracted amount to-date for the project. In so doing, it eliminates the claim on the part of the Buyer that "I had no idea.....".
Third, it tracks the finances of the entire project. Everyone involved is aware of how much money has been paid on previous draws, the amount of this draw, and how much remains to pay for the project from the original commitment.
It often happens that the Buyer gets carried away with additions and changes in the first part of the project, and then is amazed that there is no funding remaining at the end of the the project. The process of interim draws and a complete accounting keep all parties aware of the cash flow on the project.
The Draw Request works with the Notice of Acceptance (NOA). The NOA indicates that the Buyer is satisfied with the Project to date. The Draw Request is how the Builder acts on the Buyer approval, by requesting payment per the contract.
The PDF and description of the document above provides sufficient information for you to replicate the document.
However, you may want to consider purchasing the entire Client Management package, consisting of:
All important information is shared between the documents, reducing input error.
The package is in Excel format, making it simple to adapt to your needs, and easy to install.
The entire package is installed into each job so all the Client Management documents you need are at your fingertips.