Contractor Invoicing Software

Process construction invoices, progress billing, and AIA forms automatically. Extract data from PDF invoices, reconcile bank statements, and manage multi-project accounting with AI-powered document processing.

98.2%

Invoice Accuracy

85%

Time Savings

Invoice Types

Try for one week

Construction Invoice Types Processed

Progress Billing Invoice

Billing based on percentage of work completed

Time & Materials Invoice

Billing for labor hours plus materials at cost plus markup

Lump Sum Invoice

Fixed-price billing based on milestones

Subcontractor Invoice

Invoice from subcontractor to general contractor

Construction Invoice Types: Required Fields and Formats

Each construction invoice type has specific requirements. Understanding these ensures faster payment processing and fewer rejections.

Progress Billing Invoice

Billing based on percentage of work completed

Retainage

5-10%

Payment Terms

Net 30

Required Fields

Contract value

Previous billings to date

Current period work completed (%)

Retainage held (%)

Amount due this invoice

Schedule of values breakdown

AIA G702/G703Custom progress billing

Time & Materials Invoice

Billing for labor hours plus materials at cost plus markup

Retainage

Payment Terms

Net 15-30

Required Fields

Labor hours by trade/rate

Materials itemization with receipts

Equipment rental charges

Overhead/profit markup (%)

Work order/change order reference

Detailed line itemDaily log format

Extract contractor invoice types automatically

Lump Sum Invoice

Fixed-price billing based on milestones

Retainage

5-10%

Payment Terms

Net 30

Required Fields

Contract amount

Milestone description

Milestone completion date

Percentage of contract complete

Prior payments received

Simple invoiceMilestone certificate

Subcontractor Invoice

Invoice from subcontractor to general contractor

Retainage

5-10%

Payment Terms

Net 30-45

Required Fields

Subcontract reference number

Scope of work description

Lien waiver (conditional/unconditional)

Insurance certificate reference

Certified payroll (if prevailing wage)

Subcontractor payment applicationStandard invoice

Change Order Invoice

Additional work beyond original contract scope

Retainage

Per original contract

Payment Terms

Per original contract

Required Fields

Original contract number

Change order number

Description of additional work

Cost breakdown (labor/materials/overhead)

Owner/GC approval documentation

AIA G701Custom change order form

Automate construction invoice processing

AIA Document Forms Reference

American Institute of Architects (AIA) forms are the industry standard for commercial construction billing. Understanding these forms is essential for proper payment processing.

AIA G702

Application and Certificate for Payment

Contractor payment application to owner

Use with: G703 Continuation Sheet

Original contract sum

Net change by change orders

Contract sum to date

Total completed and stored to date

Retainage

+ 3 more fields

AIA G703

Continuation Sheet

Schedule of values breakdown by line item

Use with: G702 Application

Item number

Description of work

Scheduled value

Work completed (previous/this period)

Materials presently stored

+ 4 more fields

Simplify G702/G703 processing

AIA G701

Change Order

Document changes to contract scope/price

Use with: Original contract

Change order number

Project information

Owner/contractor/architect names

Description of changes

Change in contract sum

+ 2 more fields

AIA G704

Certificate of Substantial Completion

Mark project milestone for final payment

Use with: Punch list

Project identification

Date of substantial completion

List of items to be completed

Responsibilities for completion items

Contractor warranty start date

Process AIA forms automatically

Lien Waiver Requirements by Payment Stage

Lien waivers protect all parties in construction payment chains. Missing or incorrect waivers are a leading cause of payment delays.

Conditional Waiver on Progress Payment

Before payment released

Waives lien rights for specific amount WHEN payment is received

When to Use

Submit WITH progress payment request

Risk if Missing

GC may delay payment; affects payment flow to subcontractors

Unconditional Waiver on Progress Payment

After payment cleared

Confirms lien rights waived for amount AFTER payment received

When to Use

After receiving progress payment

Risk if Missing

Next payment may be held; creates audit issues

Conditional Waiver on Final Payment

Before final payment

Waives all lien rights WHEN final payment is received

When to Use

Submit WITH final payment request

Risk if Missing

Final payment blocked; retainage held indefinitely

Track lien waivers automatically

Unconditional Waiver on Final Payment

After final payment cleared

Confirms ALL lien rights waived on project

When to Use

After receiving final payment

Risk if Missing

Project cannot close; potential legal issues

Verify lien waiver requirements instantly

Invoicing by Contractor Trade

Different construction trades have unique invoicing patterns and common issues. Understanding these helps prevent payment delays.

Electrical Contractors

Billing Type:Progress billing + change orders

Avg Invoice:$15,000-$150,000

Billing Cycle:Monthly

Retainage:10%

Common Issues:

Panel schedules not matching

Change order disputes

Plumbing Contractors

Billing Type:Milestone + T&M for service

Avg Invoice:$5,000-$75,000

Billing Cycle:Monthly

Retainage:10%

Common Issues:

Rough-in vs. finish billing timing

Material cost fluctuations

HVAC Contractors

Billing Type:Progress billing + equipment

Avg Invoice:$25,000-$200,000

Billing Cycle:Monthly

Retainage:5-10%

Common Issues:

Equipment deposits

Startup/commissioning billing

Handle trade-specific billing instantly

General Contractors

Billing Type:AIA G702/G703 progress billing

Avg Invoice:$100,000-$5,000,000+

Billing Cycle:Monthly

Retainage:5-10%

Common Issues:

Schedule of values disputes

Subcontractor lien waivers

Roofing Contractors

Billing Type:Milestone (50% deposit typical)

Avg Invoice:$10,000-$100,000

Billing Cycle:Per project

Retainage:0-5%

Common Issues:

Weather delays affecting milestones

Material price escalation

Concrete Contractors

Billing Type:Progress billing (poured in place)

Avg Invoice:$20,000-$500,000

Billing Cycle:Bi-weekly/Monthly

Retainage:10%

Common Issues:

Quantity disputes

Weather delays

Handle all trade invoicing types

Common Invoice Rejection Reasons and Solutions

Understanding why invoices get rejected helps prevent payment delays. These are the most frequent issues and how to avoid them.

Schedule of Values Mismatch

35% of rejected invoices

Cause

Line items don't match original contract schedule of values

Solution

Maintain master SOV document; reference exact line item numbers

Prevention Tip

Request SOV template from GC before first billing

Missing Lien Waivers

28% of rejected invoices

Cause

Conditional or unconditional waivers not included for all tiers

Solution

Create lien waiver checklist; track by subcontractor

Prevention Tip

Collect sub waivers before submitting pay app

Retainage Calculation Error

18% of rejected invoices

Cause

Retainage percentage or accumulated amount calculated incorrectly

Solution

Use consistent retainage tracking spreadsheet

Prevention Tip

Verify retainage against prior pay apps before submitting

Eliminate common invoice errors

Change Order Not Approved

12% of rejected invoices

Cause

Billing for work without signed change order documentation

Solution

Never perform change order work without written approval

Prevention Tip

Keep change order log with approval status

Stored Materials Documentation

7% of rejected invoices

Cause

Billing for stored materials without proper documentation

Solution

Provide photos, delivery tickets, and storage location proof

Prevention Tip

Document materials at delivery with timestamped photos

Prevent invoice rejections with AI

Construction Payment Timeline Benchmarks

Understanding the typical payment processing timeline helps set expectations and identify bottlenecks in your invoice workflow.

Invoice Submitted

Contractor submits payment application with lien waivers

GC Review

General contractor reviews for completeness and accuracy

Owner Approval

Owner/architect reviews and approves payment

Payment Processing

Accounts payable processes approved invoice

Payment Issued

Check/ACH payment released to contractor

Sub Payments

GC pays subcontractors (pay-when-paid typically 7 days)

Avg Days to Payment

Best Practice Target

1.5-2% per month finance charge typical

Late Payment Cost

30-60 days after substantial completion

Retainage Release

Accelerate your payment processing

Frequently Asked Questions

Common questions about contractor invoicing and construction billing.

What is the difference between progress billing and time & materials invoicing?

Progress billing invoices based on percentage of work completed against a fixed contract sum (common for larger projects). Time & materials billing charges for actual labor hours at specified rates plus materials at cost plus markup. T&M is used for undefined scope work, maintenance, or change orders where the final cost cannot be predetermined.

What lien waivers are required with contractor invoices?

Four types of lien waivers exist: Conditional Waiver on Progress Payment (submit with invoice), Unconditional Waiver on Progress Payment (after payment received), Conditional Waiver on Final Payment (with final invoice), and Unconditional Waiver on Final Payment (after final payment). Most states have statutory forms that must be used exactly as written.

What is retainage and how does it affect contractor invoicing?

Retainage is a percentage (typically 5-10%) withheld from each progress payment as security for project completion. It accumulates throughout the project and is released after substantial completion. For a $1M contract with 10% retainage, $100,000 is held back and released 30-60 days after the project is complete and punch list items are resolved.

What are AIA G702 and G703 forms?

AIA G702 (Application and Certificate for Payment) is the standard contractor payment application form in commercial construction. G703 (Continuation Sheet) is the schedule of values breakdown that accompanies G702. Together they provide line-by-line detail of work completed, materials stored, retainage, and payment due. Most commercial projects require these exact forms.

How long should contractors wait for payment?

Industry standard is Net 30 days from invoice submission, but actual payment often takes 30-45 days due to approval workflows. Pay-when-paid clauses may extend this for subcontractors. Many states have prompt payment laws requiring general contractors to pay subcontractors within 7-14 days of receiving payment from the owner.

What should be included on a contractor invoice?

A complete contractor invoice includes: project name and address, contract number, invoice number and date, billing period, description of work completed, labor hours and rates, materials with receipts, equipment charges, contract value and completion percentage, previous billings, retainage, and amount due. For subcontractors, also include lien waivers and insurance certificates.

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