Bookkeeping

Construction Invoices: Best Practices & Billing Procedures

2021年11月02日

Customize your invoice with any miscellaneous charges and contact information, should there be any questions concerning the invoice. Enter the details you want to include on future invoices, and save this template as your standard construction invoice. This template also allows you to upload your own logo, and it autotallies the subtotals of each section, plus tax rate, total tax, and grand total. Other information may be required depending on the project and your billing procedures.

Project Information

Lien waivers and lien releases are completely different documents (even though they are often confused by the construction industry). Our contract with the GC states “anticipated start date” because at the time of signing we did not yet have permits nor notice to proceed from the airport so we couldn’t put in a firm commencement date. The permits and NTP were received and the actual construction started…

General Contractor Construction Invoice Sample Template

It would be best if you got paid in full and on time to continue delivering your services, and professional construction invoices construction invoice templates can help with exactly that. Keep your construction project running full force and ensure prompt payment with this easy-to-use construction job invoice template. In each construction-specific field, enter client contact information, details about the materials, the job date range, a description of work, a labor breakdown, and any miscellaneous charges.

Lien Waivers

• In the products area, enter the number of items purchased for the job, a short description of what they are, their cost per item, and the total amount per item-type (quantity X unit price).
• Also, this date will be used to determine late fees and interest when applicable.
• If a dispute arises concerning payment, you’ll need documentation to validate prices and payment terms.
• List the agreed pricing for the scope of work and confirm that any work outside the contract scope will require a change order.
• Build trust with clients by providing a comprehensively detailed construction project invoice.
• As for penalties – they can be a great tool to encourage timely payment.

The very first step in the drafting process of a schedule of values is breaking down work into line items. Depending on the level of detail put into a work breakdown structure, this can almost take care of itself. The specific line items of an invoice will vary depending on a few different factors. For instance, who is sending the invoice, how big is the job, and what are the requirements for payment based on the prime contract. Keep in mind that many states require variable retention, meaning that retainage is reduced or paid out once a certain percentage of the contract is completed.

• A friendly reminder keeps clients from forgetting payment deadlines so they do not incur penalties.
• Whatever provides a gentle reminder that a payment is coming up (and how to pay it).
• Again, lump sum and unit price contracts aren’t concerned with labor costs.
• The practice of retainage, aka retention, has a tremendous impact on the construction industry.
• Invoicing construction projects requires a lot of planning, detail, and communication from all parties.

Keeping organized records of your costs will save time on a project in more ways than one. For instance, coding all costs correctly according to the project can make the invoicing process much more efficient. Additionally, keeping organized records of correct coding can help solve disputes between owners, contractors, and subcontractors. For instance, if the contract includes retainage, the owner or GC generally withholds 5-10% of the dollar amount from each progress payment. This practice often flows down to subcontractors and even sub-subcontractors. If subcontractors are unaware that retainage will affect their payment timeline, they may halt their work until resolving the dispute, thereby blocking other aspects of the project from completion.

Again, lump sum and unit price contracts aren’t concerned with labor costs. However, cost-plus contracts also care little about labor, so it’s okay to remove this section. This free general template was designed for use on small construction projects. If the contractor will be giving the client a certain number of days to https://www.bookstime.com/articles/bookkeeping-san-antonio pay, list this in the “payment is due within __ days” field.

Free Construction Invoice Template

• We have submitted 1 pay application and have withheld 5% retainage.
• While a notice of intent to lien is a great payment recovery tool, it’s important that a party who sends one can back up their payment claim with sufficient documentation.
• It allows owners to control cash outflows to match project progress.
• With financing & built-in invoice payment options, Joist could be just what you need.
• Typically, the filing of a notice of commencement by the property owner or other top-of-chain party affects preliminary notice and…

Most construction businesses are honest, and a double billing could simply be a mistake. Other times, subs and suppliers https://www.facebook.com/BooksTimeInc/ may attempt to use invoice sleight of hand. They might bank on the fact that construction offices are inundated with paperwork, hoping for a quick glance and approval of their invoice.