Subcontractor Payment Schedule
Milestone-based payment schedule between GC and subcontractor — phase, deliverable, amount, target date, retainage, status, lien-waiver requirement.
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SUBCONTRACTOR PAYMENT SCHEDULE (Milestone-Based Draw Schedule)
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Project: Maple Ridge Townhomes — electrical scope
Address: 1842 Maple Ridge Lane, Hillsboro, OR 97124
General contractor: Cascade Build LLC
Subcontractor: NW Electric & Power Inc.
Trade / scope: Residential electrical: rough-in, service panel install, device trim-out, final inspection coordination
Subcontract date: April 15, 2026
Subcontract value: $48,500.00
Retainage per draw: 10%
Payment terms: Net 7 days after GC receives the corresponding Owner draw (pay-when-paid timing).
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MILESTONES
# | Phase | Deliverable | Amount | Retain | Net | Target | Status
----|------------------|----------------------------------------------|--------------|--------------|--------------|-------------|--------
1 | Mobilization | Materials on site + permit pulled | $4,850.00 | $485.00 | $4,365.00 | 2026-04-22 | DUE
2 | Rough-in | All rough-in wiring + service entrance ready | $19,400.00 | $1,940.00 | $17,460.00 | 2026-05-08 | DUE
3 | Inspection pass | County rough-in inspection approved | $4,850.00 | $485.00 | $4,365.00 | 2026-05-15 | DUE
4 | Trim-out | Devices installed, panel labeled, GFCI/AFCI | $14,550.00 | $1,455.00 | $13,095.00 | 2026-05-29 | DUE
5 | Final | Final inspection + as-built drawings + warra | $4,850.00 | $485.00 | $4,365.00 | 2026-06-12 | DUE
TOTAL $48,500.00 $4,850.00 $43,650.00
Milestone total reconciles with subcontract value.
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LIEN-WAIVER REQUIREMENT
Each progress payment: CONDITIONAL waiver upon progress payment (state statutory form). Final payment: UNCONDITIONAL waiver upon final payment (state statutory form). GC may withhold any payment until the conditional waiver for the PRIOR payment has been received. Subcontractor warrants no unpaid lower-tier subs or material suppliers as of each waiver date.
CHANGE-ORDER POLICY
No additional work outside the schedule above without a written change order signed by GC. Verbal authorizations are at the Subcontractor's risk. Change orders amend this schedule with new milestone + amount + date; an updated schedule is re-issued upon execution.
NOTES / STATE-SPECIFIC PROMPT-PAY
Prompt-payment statute: project is in Oregon — ORS 701.625 + 701.420 (private + public prompt-pay acts) apply. GC must release payment to Subcontractor within 7 days of receipt of Owner draw on the corresponding milestone, less retainage. Disputed amounts may be withheld, but undisputed amounts must flow. Interest on late payments accrues per state-statutory rate.
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SIGNATURES
GC: _________________________ Date: _____________
Cascade Build LLC
Sub: _________________________ Date: _____________
NW Electric & Power Inc.
About this template
A subcontractor payment schedule turns the sub's lump-sum contract value into a milestone-based draw schedule that is enforceable by state prompt-payment statutes. **Three structural choices** drive cash-flow risk: (1) **Retainage** — typically 5-10% withheld per draw, released after final + lien waivers; state statutes (CA Pub. Cont. Code §7107, FL Stat. §218.735, TX Prop. Code §53.107) limit how much and how long. (2) **Pay-when-paid vs. pay-if-paid** — these are different clauses. *Pay-when-paid* is a timing clause: the sub gets paid AFTER the GC gets paid, but if the Owner never pays, the sub still gets paid eventually. *Pay-if-paid* shifts the Owner-credit risk to the sub: if the Owner never pays, the sub never gets paid. Pay-if-paid is UNENFORCEABLE in NY (Lien Law §34), NC (Wachovia Bank, NA v. Smithfield Foods), CA public projects, and limited in WI / IL / SC. (3) **Lien waivers** — conditional (upon progress payment) at each draw, unconditional (upon final payment) at close-out, in the state's statutory form when one exists (CA, AZ, FL, GA, MS, MO, NV, TX, UT, WY have statutory forms). **State prompt-payment acts** set the maximum window for the GC to flow payment to the sub after receiving the Owner draw — typically 7-10 days for the GC-to-sub leg. Late payment accrues statutory interest (1-1.5%/month is common). **Milestone definition matters**: vague "rough-in complete" leads to disputes; cite the specific code section being inspected (e.g. "county rough-in inspection passed per IRC E3406") so the trigger is objective. **Change orders** must amend the schedule explicitly — verbal authorizations are unenforceable in most state lien statutes (CA Bus. & Prof. Code §7164 requires written change orders on home-improvement contracts >$500). **The schedule is also a forecasting tool**: the GC uses it to time the Owner draw against subs' actual draws; the sub uses it for cash-flow planning and payroll. Mid-project re-baselining is normal — re-issue the schedule after each change order so the totals reconcile.
When to use it
- Sub-to-GC payment schedule attachment to AIA A401 / consensus DOCS 750.
- GC internal cash-flow planning vs. Owner draw schedule.
- Sub-side cash-flow + payroll planning.
- Re-baselining after change orders.
- Prompt-pay statute documentation in late-payment disputes.
What to include
- Project + parties + trade / scope + subcontract date + value.
- Retainage % + release conditions.
- Payment terms (net X, pay-when-paid, pay-if-paid w/ state-enforceability note).
- Milestones — phase, deliverable, amount, target date, status.
- Lien-waiver requirement (conditional + unconditional).
- Change-order policy.
- State-specific prompt-pay reference.
- Signatures.