In many small to mid-sized construction companies, billing tends to get passed around — a task squeezed in by project managers, site supervisors, or office admins between more urgent responsibilities. But as projects grow in size and complexity, delayed or inaccurate billing can become a serious financial bottleneck.
That’s where the question comes in: Do you need a dedicated billing person on your team?
Why Construction Billing Is Different
Construction billing is rarely simple. It involves progress payments, retainage, lien waivers, compliance documents, change orders, and contract-specific formats like AIA forms. Each invoice must be precise, fully supported, and sent at the right time — or you risk delayed payments or rejected submissions.
Unlike a typical business invoice, a construction invoice may need to reflect only a percentage of completed work, track retainage withheld by the client, and include backup documentation like material receipts or timesheets.
When no one owns this process, it’s easy to miss important steps. That can lead to:
- Underbilling (which quietly eats into profits)
- Delays in payments or approvals
- Frustration for clients and general contractors
- Strained cash flow that affects your ability to pay subs or buy materials
What a Billing Person Actually Does
A dedicated billing coordinator or admin doesn't just "send invoices." They:
- Track project milestones and schedule billing cycles
- Ensure all supporting documents are attached
- Follow up with clients or GCs for approvals
- Monitor outstanding payments and send reminders
- Coordinate with the finance team for deposits and job costing
This role adds structure, consistency, and accountability — which directly improves cash flow.
Real-World Example
A small subcontractor we worked with used to rely on the site manager to submit invoices. In one quarter alone, they missed out on over $18,000 due to forgotten change orders and late submissions. After assigning billing responsibility to a single admin and introducing a standardized process, their average payment turnaround improved by 30%.
"We Can’t Afford a Billing Person"
That’s a common objection — but the truth is, you’re already paying for billing, whether you realize it or not.
If your PMs are spending hours trying to chase down approvals, gather documents, or correct invoice errors, that’s time they’re not spending managing jobs. In contrast, a billing person (even part-time or outsourced) can focus on the process and free up everyone else to do their core jobs better.
If hiring isn't possible, assign billing responsibility clearly to one admin, and equip them with a clear workflow and tools to do it well.
Billing + Software = Best Results
Even with a billing person in place, having the right tools can streamline everything. Cloud-based billing software helps:
- Automatically generate payment applications
- Track progress billing and retainage
- Store lien waivers and backup docs
- Notify teams when it’s time to bill
It reduces manual errors and helps even small teams operate professionally.
Final Thoughts
In construction, cash flow is survival. Billing is how you keep it moving. If billing tasks are scattered across different roles — or treated as an afterthought — you’re leaving money on the table.
A dedicated billing person brings structure, speed, and accountability to the process. Whether you hire someone, assign the role internally, or use smart software, the return on investment can be immediate and measurable.
Need help creating a construction billing workflow or choosing the right tools?
Reach out or check out our billing offerings to get started.