Before You Promise a Contractor a Payment Date, Map the Draw

Don McClain, Founder & Principal of Medro Advisors, explains how commercial property owners can connect a contractor’s payment expectations to the actual financing process. Identify the work covered, requested amount, release conditions and intended recipient. Keep documents submitted separate from documents accepted, and distinguish estimated timing from confirmed status. Each unresolved item needs an owner and a recheck date. The transaction’s financing documents and current lender instructions determine the requirements. This practical review helps the project team address the next dependency before promising a payment date.