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The balance to finish is higher than last month. You did not add scope on this sheet. You lean forward, squinting at the line items you cross-checked with the foreman three weeks ago, and run a finger along the two columns of numbers printed on the left third of the page. No change orders were submitted or approved between the last draw and this one, and all scheduled work was completed on the timeline you agreed to with the general contractor. The only deviation you spot right away is a mismatch between the projected remaining cost you logged last month and the new number listed under current projected remaining costs.
Name Both Balance to Finish Lines on This Draw Request Support Sheet
You first label the two distinct balance to finish lines clearly, so there is no ambiguity about what each figure represents for anyone who reviews this document later. The first line is the prior period projected balance to finish, which is the figure you submitted alongside your last approved draw, calculated as total contract value minus total amount billed to date minus any approved change order value as of the last pay period. The second line is the current period calculated balance to finish, which is the figure your counterparty listed on this current draft draw, calculated using their internal cost tracking that may include unconfirmed labor rate adjustments, material cost fluctuations you never signed off on, or incorrectly logged completed work. You map each line to its supporting data in the table below to formalize the discrepancy:
| Line Label | Calculation Basis | Listed Value | Notes |
|---|---|---|---|
| Prior Period Projected Balance to Finish | Total contract value ($1,240,000) minus total billed to date as of 8/15/2024 ($728,000) | $512,000 | Submitted with your 8/15/2024 approved draw, no open change orders at that time |
| Current Period Calculated Balance to Finish | Counterparty internal cost tracker as of 9/15/2024, total billed to date marked as $682,000 | $579,000 | Listed on the current draft draw you are reviewing now |
| Discrepancy | Difference between current listed balance and prior projected balance | +$67,000 | No documented scope changes submitted to support the increase |
Illustrative example: The $67,000 discrepancy here aligns with unapproved material cost pass-throughs the general contractor mentioned verbally last week, but you never signed a written agreement to absorb those costs, so they do not count toward an adjusted balance to finish at this time. You jot a short parenthetical note next to the discrepancy line referencing the verbal conversation, so you don’t forget the context of the mismatch later.
Mark the Controlling Line on This Draw Request Support Sheet
Next, you mark which line is the agreed upon controlling figure for this pay period, so there is no confusion about which number applies to this draw cycle. The controlling line is always the prior period projected balance to finish unless a fully executed, written change order is attached to the current draw to justify an increase to the remaining contract value. You follow these four steps to mark the sheet clearly without obscuring the original printed figures:
- Highlight the prior period projected balance to finish line in light green, to flag it as the controlling figure for this pay period for both your team and the general contractor’s review team.
- Cross out the current period calculated balance to finish line with a single thin red line, so you can still read the original number for future reference but it is immediately clear you do not accept it as a valid figure for this pay cycle.
- Write a short note in the right margin next to the crossed-out line that reads “No signed change order on file to support $67k increase; controlling balance is $512k as of 8/15/2024”.
- Initial and date the note in the margin, so anyone reviewing the document later knows who annotated it and when the annotation was made.
You use standard annotation colors that your entire team and the general contractor’s accounting team recognize, so there is no confusion about what the highlights and cross-outs mean. You do not adjust your billed amount for this pay period based on the incorrect higher balance, as there is no supporting documentation to validate the increase.
File This Annotated Draw Request Support Sheet With Your Pay Application Records
Once you finish annotating the sheet, you file it in all relevant locations to ensure you can access it quickly and share it with relevant stakeholders as needed. First, you attach a copy to the version of the draw request you submit back to the general contractor for review, so they have immediate visibility into your annotation and the reason you are rejecting the higher balance to finish. Next, you save a digital copy in your cloud pay application folder, labeled with the project number, pay period date, and “annotated balance to finish” in the file name, so you can pull it up in seconds if there is a follow-up question from the accounting team or the general contractor. You can log a copy of the annotated sheet to Draw Jacket for cross-reference with your other project pay documents, so you don’t have to dig through multiple folders to pull supporting records if a discrepancy carries over to the next pay period. Finally, you print a hard copy to store in your on-site project file binder, behind the tab for 9/15/2024 pay applications, so your on-site foreman can reference it if the general contractor brings up the balance increase during a scheduled site walk later this week. You also send a short, factual email to the general contractor’s project manager letting them know you’ve annotated the draw sheet and are available to review any supporting documentation they have for the balance increase, if it exists, to resolve the discrepancy quickly.
When You Pull This Draw Request Support Sheet Next Pay Period
When you open this same annotated sheet next pay period to cross-check the new draft draw, you will use the notes you’ve added here to streamline your review process. First, you will cross-reference the annotated controlling balance on this sheet with the balance to finish listed on the next draft draw you receive, to check if the general contractor adjusted their listed balance to match the $512,000 controlling figure you marked, or if they attached a fully executed change order that justifies a higher balance. If they have attached a signed change order that both you and their team have approved, you will update the balance to finish to reflect the agreed upon scope increase, and note the change order number in the blank margin of this sheet for cross-reference. If they have not adjusted the balance or provided supporting documentation for the increase, you will repeat the annotation process for the new draw, referencing the note on this sheet as prior proof of the ongoing discrepancy. You will also cross-check the total billed to date figures on the next draw against your own internal billing records, to make sure no completed work was incorrectly left off the billed amount to inflate the remaining balance. If you have a conversation with the general contractor about the discrepancy between now and the next pay period, you will jot a short, factual note about the conversation on the back of this sheet, including the date of the conversation and who you spoke with, so you have a full, attached paper trail for every interaction related to this balance mismatch. You will keep this sheet attached to all future pay application records for this project until the contract is fully completed, so you have a consistent reference point for all balance to finish adjustments.
