Start from the contract
The executed agreement defines billing frequency, schedule of values, retainage, stored materials, backup, approvals, tax, and payment timing.
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Construction invoicing depends on contract structure, approved scope, progress evidence, change control, retainage, and payment terms. A strong estimate can seed the billing breakdown, but invoicing remains a separate accounting and contract-administration job.
Working principles
The executed agreement defines billing frequency, schedule of values, retainage, stored materials, backup, approvals, tax, and payment timing.
Approved change orders should update contract value and billing lines explicitly. Do not hide pending or disputed changes inside base progress.
Compare earned revenue, cost incurred, committed cost, cash received, retainage, and forecast so overbilling or underbilling is visible.
Decision guide
Choose around the contract and accounting record, not invoice appearance alone.
| Factor | What good looks like | How to verify it |
|---|---|---|
| Schedule of values | Maintain approved line values and prior, current, and completed amounts. | Reconcile a sample pay application line by line with the signed contract and changes. |
| Retainage | Calculate, track, reduce, and release retainage by the governing contract rules. | Test different retainage rates and partial release without manual correction outside the record. |
| Change orders | Keep proposed, approved, rejected, and billed change status distinct. | Trace an approved change from authorization through invoice and job-cost reporting. |
| Accounting ownership | Define where invoices, receipts, tax, aging, and the general ledger are authoritative. | Close a billing period and confirm totals reconcile without duplicate entry or silent overrides. |
Practical sequence
Reconcile the signed agreement, alternates, allowances, and accepted scope.
Create the approved schedule of values and retainage rules.
Support percent complete, stored materials, changes, and required backup.
Record approval, invoice, receipt, retainage, and job-cost impact.
Common questions
No. Estimating prices proposed work before award. Invoicing requests payment under an executed contract based on agreed billing rules, earned progress, approved changes, and supporting records.
It can provide a starting breakdown, but the contractor and owner may require different billing lines. Reconcile the final schedule of values to the signed contract before the first application.
No such current product claim is made. BuildVision AI focuses on takeoff, estimating, and proposal output; use the contractor’s approved accounting and billing system for invoices and payments.
Verify current product capabilities, material systems, code requirements, commercial terms, and local pricing with the responsible vendor, designer, contractor, or authority.