How KonstructIQ Handles Contractor Billing
Billing should move cash, not create chaos. For most general contractors, payments come from every direction — clients by ACH or credit card, subs wanting checks, and vendors sending invoices that don’t match the job breakdown. Disconnected systems make it hard to know what’s been billed, what’s been paid, and what’s still owed — putting cash flow at risk.
This guide explains how contractors approach billing today, the common pitfalls that stall cash flow, and how KonstructIQ centralizes billing so money moves smoothly from estimate to final payment.
Core Problems Contractors Face
1. Disconnected Payment Methods
Clients pay by ACH or card, subs want checks, and vendors send invoices via email. Without a single system, tracking who paid, how they paid, and what it applied to is a constant scramble.
2. Progress Billing and Retainage Headaches
Progress draws, retainage, and change orders rarely tie back cleanly to the job’s line items. That leads to disputes, delays, and cash sitting in limbo.
3. Estimate → Budget → Bill Doesn’t Sync
What gets billed often doesn’t reflect what was estimated or budgeted. Manual updates and re-entry cause misalignment and missed margins.
4. Slow Cash Flow
When billing is unclear or hard to pay, money stalls. GCs end up fronting costs — the exact opposite of healthy construction cash flow.
How Contractors Handle It Today
Most teams mix spreadsheets, accounting systems, email, and a patchwork of payment tools. It “works” until volume increases or projects get more complex. Then small gaps — a missing line item on an invoice, a partial payment that’s not applied correctly — become cash flow blockers.
- Invoices aren’t mapped to the same line items used in the estimate or budget.
- Progress billing is tracked in a separate sheet no one trusts.
- Retainage and change orders get lost in email threads.
- Payment options aren’t centralized, so money takes longer to arrive.
Even good tools fall short when they don’t connect estimating, budgeting, billing, and payments in one place.
The KonstructIQ Angle
KonstructIQ centralizes contractor billing so every dollar has a source and a destination. Estimates become budgets, budgets drive billing, and payments post back automatically — keeping cash moving and margins intact.
- Progress Billing and Retainage: Bill by percentage complete or milestones, automatically reflecting change orders and retainage rules.
- Line-Item Accuracy: Bills tie directly to job line items from your estimate and budget. See Contractor Line Items.
- Flexible Payments: Offer ACH, card, or check in one system. Clients and subs get simple, familiar options that speed up cash collection.
- Live Cash Flow: Payments and vendor bills roll up to your financial view instantly. Explore Contractor Finances.
- From Estimate to Invoice: Generate accurate estimates fast, then bill against them with confidence. Learn more in Contractor Estimating and Contractor Budgeting.
The result: clear, accurate invoices; faster payments; and fewer surprises mid-project. Cash moves smoothly so GCs aren’t funding jobs out of pocket.
Control Billing and Cash Flow, Without the Friction
KonstructIQ keeps estimating, budgeting, billing, and payments connected — giving you a single source of truth for every job and a reliable path to healthy cash flow.
FAQs About Contractor Billing
What is contractor billing vs contractor invoicing?
Billing is the overall process of requesting and collecting payment for work completed, including progress draws, retainage, and reconciliation. Invoicing is the document you send. In practice, they overlap, effective billing produces accurate invoices tied to the job’s scope and budget.
How does progress billing work for contractors?
Progress billing invoices for a percentage of work completed or specific milestones. It should map to your estimate’s line items or schedule of values, reflect approved change orders, and account for retainage until project closeout.
What is retainage and how should it appear on invoices?
Retainage is a portion of payment withheld until the job reaches certain milestones or is complete. Your invoice should clearly display retainage held, retainage released, and the current amount due to prevent disputes and delays.
Which payment methods should contractors offer?
ACH, credit, checks, and in the future financing options, all integrated easily into your workflow. Centralizing payment options in one system speeds collection and reduces tracking errors.
Can KonstructIQ handle partial payments and payment applications?
Yes. Payments can be applied to specific invoices and line items, including partials. KonstructIQ keeps your budget and cash flow accurate in real time.
Does KonstructIQ support progress billing, retainage, and change orders?
Yes. Progress draws, retainage tracking, and approved change orders are all supported and tied back to the estimate and budget for accuracy.
Can subs and vendors be paid through KonstructIQ?
Yes. You can pay and track vendor bills and sub payments alongside client invoices, improving cash-flow forecasting and keeping every dollar connected to a line item.
Can I import existing invoices or map them to line items?
You can import and map invoices to your budget or line items. KonstructIQ helps ensure what you bill matches what you estimated and planned.
