You negotiated a strong allowance and built the space on budget. Then the first draw request comes back rejected, and the money that was supposed to reimburse your contractor is sitting behind a paperwork problem. This is common, and it is almost always avoidable.
Why draws get held
- Missing lien waivers — the lease requires conditional and unconditional waivers from the GC and every subcontractor and supplier above a threshold. One missing lower-tier waiver holds the whole draw.
- Pay application does not tie out — the G702/G703 does not match the approved budget, or the math does not foot.
- No proof of permit and inspection sign-off — the landlord wants the signed permit card or a certificate of occupancy.
- Submitted late — after the monthly draw window, or worse, after the allowance draw deadline in the lease.
- Costs outside the allowable scope — FF&E or cabling billed against an allowance that excludes them.
How to get paid the first time
- Pull the documentation checklist straight out of the work letter before construction starts, and map it to every pay application.
- Make lien-waiver collection a condition of paying each sub — no waiver, no check.
- Keep the schedule of values identical to the landlord-approved budget.
- Assemble each draw as a single package: G702/G703, waivers, paid invoices, permit sign-offs, progress photos.
- Submit inside the lease’s draw window, every time, with tracking to payment.
Landlords reimburse against documentation, not effort. Build the package to their checklist and the allowance shows up on schedule.