As you know, our mission at Sharp Capital is to streamline the invoicing process by using machine learning and data capturing technology to create invoice automation with inBuild! We strive to alleviate bookkeeping headaches by minimizing the additional time spent on manual data entry, during each phase of the invoice’s lifecycle. In addition to the hundreds of invoices received, bookkeepers oversee the following documents on a day-to-day basis:
- Estimates
- Contracts
- Invoices
- Lien Waivers
- Certificate of Insurance
In construction, an estimate forecasts the cost of a particular project or build as accurately as possible. Accurate estimates are crucial for development projects for the Bookkeeper to ensure that the project can run on time and on budget. Contractors, subcontractors and vendors will prepare cost estimates, which will then lead to contracts.
Contracts in construction are a mutually or legally binding agreement that sets terms for the project. This includes start and end date projections, what work will be done, labor cost, material cost, who will be involved in the construction process, and procedural on any changes to the project or agreement. Once the contract is finalized, it is then signed by both parties. After the agreement is signed, the Bookkeeper will then begin to receive invoices for the project.
Invoices in construction are documents that are issued by a vendor to a purchaser for the product or service that the company has agreed to purchase. These invoices include a variety of fields, such as: project name, vendor name, invoice number, invoice date, contract amount or change order, order ID, and total amount.
With every paid invoice, there is a lien waiver. A lien waiver is a commonly exchanged between parties in the construction industry. This document is typically signed by the party receiving payment, in exchange for the payment. In the simplest terms, a lien waiver waives the lien rights in exchange for payment. Typically, the party distributing payment will not issue a check without the lien waiver being signed. This ensures that the party receiving payment will not file a mechanics lien.
Lastly, a Certificate of Insurance is a document that serves as proof of insurance, containing pertinent details of the policy. It is an essential document for construction company who utilizes contracted labor.
The estimates, contracts, invoices, lien waivers and certificates of insurance are just some of the documents and agreements that play an important role in the construction and development process! Each of these documents are complex, requiring time and attention to detail.
