Reviewing and Approving Contractor Invoices

During the construction of your custom home, you'll be responsible for reviewing and approving contractor invoices. These invoices are submitted by the contractor for payment and typically include labor costs, materials, equipment rentals, and other expenses incurred during construction. You'll want to carefully review these invoices to ensure they align with your contract terms, project progress, and budget.

You can use an EcoHome project to help you stay on track with payments, or use other methods.

1. Re-familiarize yourself with the payment schedule: Before the project begins, review the payment schedule outlined in your contract with the contractor. This schedule will detail when payments are due and the milestones or percentage of work completed that will trigger a payment. Be sure to understand this schedule, as it will help you anticipate when invoices will be submitted and ensure payments align with the project's progress.

2. Compare invoices to the contract: When you receive an invoice from the contractor, review it carefully and compare the amounts and line items to the agreed-upon terms in your contract. Check for any discrepancies or inconsistencies and make sure the invoice reflects the work that has been completed or materials that have been delivered.

3. Verify work progress: Before approving an invoice, confirm that the work and materials described in the invoice have been completed or delivered as expected. This may involve visiting the construction site, consulting with your architect or project manager, or reviewing progress reports and photographs.

4. Request documentation, if necessary: If you have questions about specific items on the invoice or need additional information, don't hesitate to request documentation from the contractor. This may include receipts, delivery slips, or detailed explanations of the work performed. Having this documentation on hand will provide clarity and help prevent misunderstandings or disputes.

5. Address discrepancies promptly: If you notice any discrepancies or errors on an invoice, address them with your contractor as soon as possible. Discuss the issue and request a revised invoice, if necessary. Promptly addressing discrepancies will help maintain a positive working relationship and keep the project moving forward.

6. Keep a record of invoices and payments: Maintain a well-organized record of all invoices submitted by the contractor, as well as your payments. This documentation will help you track your project expenses, monitor your budget, and provide a reference if any issues or disputes arise during or after construction.

7. Approve and pay invoices on time: Once you've reviewed an invoice and confirmed that it accurately reflects the work completed and materials delivered, approve it and submit payment according to the terms of your contract. Timely payments help maintain a positive working relationship with your contractor and contribute to a smoother construction process.

By carefully reviewing and approving contractor invoices, you can ensure that your custom home project stays on budget and progresses as planned. Maintain open communication with your contractor, architect, and project manager throughout the construction process to address any concerns and keep the project running smoothly.