What a Deposit in Your Draw Is Paying For

Most of a draw request pays for work that's already done. Framing in place, rough plumbing inspected, drywall hung. Then there's a line that looks different: a deposit on windows, cabinets, or a range, for something that isn't on site yet.

Deposits are normal. They're also easy to lose track of, because you're paying for something you can't see. A little structure around them keeps everyone clear.

Why deposits are normal

Long-lead items often need money up front before the supplier will start. Custom windows, exterior doors, cabinets, specialty appliances, some stone and tile, and some mechanical equipment can all take weeks or months to arrive. Many suppliers want a deposit when the order is placed, and the balance at delivery.

Builders usually pass that through in a draw, because they shouldn't be financing your windows. That's fair, and it keeps the schedule moving.

Three stages to track

Every deposit is paying toward something that moves through three stages:

• Ordered. The order is placed and the deposit is paid to the supplier.
• Delivered. The item is on site or in the builder's storage.
• Installed. It's in the house.

Knowing where each deposit stands tells you what you've actually paid for. A window deposit with the windows six weeks from delivery is a different thing from a window deposit with the windows installed.

What backup to ask for

A deposit line in a draw should come with something that ties it to a real order. A copy of the supplier's order confirmation or invoice showing the deposit amount is usually enough. It tells you three things: the order was placed, the amount matches, and the product is what you selected.

That last one matters more than it sounds. Checking the order confirmation is a cheap way to catch a wrong color, size, or model before the item is built.

How deposits get credited later

Here's where deposits get confusing. When the item is delivered or installed, the full cost often shows up again in a later draw, under its normal line. The deposit you already paid should be credited against it.

An illustrative example for a window package:

Draw	Line	Amount
Draw 2	Window deposit (50%)	$24,000
Draw 4	Windows, full package	$48,000
Draw 4	Less deposit paid in Draw 2	($24,000)
Draw 4	Net for windows	$24,000

If the credit line isn't there, it's usually just a bookkeeping miss, and an easy one to fix with a question. Keep a short list of every deposit you've paid, and check it each time a draw comes in.

When an order changes or stalls

Sometimes a deposit gets paid and then things move. You change the cabinet door style, a window size changes with a revision, or the supplier pushes delivery back two months. Each of those raises a question about the money already paid.

If you change a selection after the order is placed, ask what happens to the deposit before you decide. Some suppliers can apply it to the new order. Some charge a restocking or cancellation fee, and custom-made items may not be returnable at all. That's worth knowing up front, because it can change whether the switch is worth it.

If delivery slips, it's fair to ask whether the schedule is affected and what the builder needs from you. A late delivery isn't anyone's fault by default, but it's a schedule fact you'll want on record.

A note on allowances

If the deposit is for something under an allowance, like appliances or lighting, the deposit counts toward that allowance. When the final invoice comes, the overage or credit is figured on the full cost, not just the balance. See Allowance math for how that works.

Questions worth asking

• What is this deposit for, and can I see the supplier's order confirmation?
• Does the order match what I selected, including model, size, and finish?
• When is it expected to be delivered, and when installed?
• How will this deposit be credited when the full cost is billed?
• Which of my deposits are still waiting on delivery?