Underbillings in the context of construction refer to the situation where a contractor bills less than the actual value of work completed to date on a project. This can occur for various reasons, such as errors in estimating, changes in project scope, or delays in billing for completed work. Underbillings can have significant implications for a construction project, as they can lead to cash flow problems for the contractor and impact their ability to cover costs and meet financial obligations in a timely manner.When underbillings occur, contractors may need to find alternative sources of funding to cover expenses until they can catch up on billing for completed work. This can strain relationships with suppliers, subcontractors, and creditors, as well as potentially lead to delays or disruptions on the project.