There is an almost limitless variety of difficulties that may cause projects to be delayed, but payment application errors are one of the most common. If you find yourself committing any of these errors, don’t make the mistake of thinking it’s “no big problem.” These blunders might result in significant delays and additional expenditures. Remember that Fund Control can assist a variety of financial institutions in navigating these challenges.

Not submitting a pay application or submitting it late

You cannot expect to get paid for the job you do if you do not submit an invoice or a payment application. This is why you should send invoices on the same day every month to ensure that nothing gets lost in the shuffle. Subcontractors generally have the most luck billing around the 20th of the month so that general contractors may include the invoice in their owner invoice.

Around the 25th of the month, a general contractor should start billing. It’s critical to explicitly label the document as a “invoice” or “pay application” to avoid it being mislabeled and filed as an estimate. The consequences of failing to provide this documentation on time might be severe. Subcontractors may be required to wait until the following month for their costs to be levied and invoiced to the owner, potentially resulting in a two-month delay for payment.

Not using the appropriate format

Processing might be considerably slower and payment can be delayed if you do not use the right form. If the project owner or general contractor requests that you utilize a progress billing program, you should follow their instructions. Make sure you understand exactly what is required on your form. Some organizations, for example, need a breakdown of all work, as well as how much of each job has been accomplished at the time of billing.

Failure to provide accurate information

If you use improper math or input the wrong numbers, your invoice may be returned to you with a request to amend it – or it may be rejected outright, forcing you to start the process all over again. This is why you must double-check all figures and complete the arithmetic twice to assure accuracy.

This is another manner in which Fund Control may help. Redundancy is frequently the cause of these mistakes. When an employee must input the same data into many locations, for example, the likelihood of making a mistake increases with each entry. When you use our cutting-edge product, you just have to enter it once and it will save all of the information you require. To discover how to receive a free sample and experience the effects for yourself, call Fund Control at 800-625-5972.