Preparing a monthly progress billing that gets paid
It is the 24th, and the golf clubhouse billing is due to the consultant tomorrow. Last month's came back twice, first because the reviewer questioned the timber frame percentage, then because the statutory declaration was missing. The money arrived three weeks late.
Bill the work in place at the cut-off date, line by line against the approved schedule of values, with backup a reviewer can check from a desk and every document the contract lists, and deliver it complete on the due date. Billings are paid late for predictable reasons: they arrive late, their percentages do not match what the reviewer saw on site, or a document is missing. Each one gets the billing sent back, cut or held, and the money arrives later than the contract promised.
- Set the routine at the start: cut-off date, due date, form, reviewer and the documents each billing needs.
- Walk the job at the cut-off with the superintendent and set each line's percentage from work in place, not from cost spent or the schedule's plan.
- Bill approved changes on their own lines, and stored materials only as the contract allows, with the proof it asks for, such as title and insurance.
- Check the arithmetic: previous total, this period, total to date, holdback, previous payments and amount due, with no line over 100 per cent.
- Attach the backup: dated photos by area, the updated schedule and a quantity sheet for any line that jumped.
- Add every listed document and send it on time, then diarize the payment date and any deadline for a notice of non-payment.
Common mistakes
- Billing the schedule's planned percentage instead of the work in place.
- Pushing a line ahead to cover a cash shortfall; reviewers notice and check every line after.
- Folding unapproved changes into base-contract lines.
- Sending it late, which can push payment into the next cycle.
Checklist
Before the billing goes out
- Percentages from this month's walk
- Approved changes on their own lines
- Stored materials only with the required proof
- Arithmetic checked, holdback shown
- Photos, schedule and quantity sheets attached
- Every listed document
- Payment and notice dates in the calendar
Check your understanding
The schedule planned 85 per cent of the framing by the cut-off; the superintendent counts 70. The owner is used to the schedule's numbers. Which do you bill?
