Billing & AR
Definition
A breakdown of the contract sum into line items, each with a value, used as the basis for progress billing.
Each month you bill the percentage complete on every line. A schedule of values that mirrors your cost codes makes billing, job costing, and the WIP all line up.
The progress billing request a contractor submits to the owner, typically on the AIA G702 application form with a G703 continuation sheet listing progress by line item.
Billings in excess of costs and estimated earnings: you've invoiced more than you've earned on a job. It's recorded as a liability on the balance sheet.
A percentage of each progress payment, commonly 5% to 10%, that the owner or GC holds back until the job or a phase is substantially complete.
Billing & AR
Retainage can lock up 5% to 10% of every contract for months. How to track receivable and payable retainage and get it released faster.
Done-for-you construction finance
BuildFlash runs your monthly finance on top of the software you already use, with a fractional CFO reviewing the numbers with you.