Accounts Receivable for General Contractors

Build a repeatable AR process for larger jobs and longer payment cycles.

Trade specific context: general contracting

General contractors manage many stakeholders, so unpaid balances often come from process gaps, not refusal to pay. Strong AR performance comes from disciplined claim packs, weekly tracking, and defined escalation ownership.

USA vs Australia terminology

Using familiar local wording in quotes, invoices, and reminders reduces confusion and helps approvals move faster.

Recommended billing model

Model: multi subcontractor progress claims

1. Agree on payment terms and approval steps before work starts.
2. Invoice immediately when each billable stage is complete.
3. Schedule reminders before the due date and on the due date automatically.
4. Escalate overdue accounts on a clear, fixed schedule.

Common blocker and fix

Frequent blocker: subcontractor paperwork missing

Fix: Attach the right proof and references when you send the invoice, then confirm receipt with the approver the same day.

Example: A project manager and bookkeeper run a Friday AR review by project. Claims missing approvals are flagged early, reducing end-of-month surprises.

Common questions for general contracting

What AR process works for general contractors?
Set weekly AR review with status by project, payer, and approval stage.

How do GCs avoid payment bottlenecks?
Standardize claim packs with scope, evidence, and approvals each cycle.

Should GCs escalate faster on overdue claims?
Yes. Escalate by timeline and contract rights, not ad hoc phone calls.

Metrics to review weekly

• Overdue value by aging bucket.
• Average days to payment by client type.
• Reminder response rate and promise to pay completion.
• Dispute volume and resolution lead time.

Note: Regulatory requirements differ by state and country. Use local legal and accounting advice for contract and statutory compliance.

Want to automate follow-ups and get paid faster?

Invoice Chase helps trade businesses send consistent reminders with less admin overhead.