How do I handle progress billing invoices from subcontractors?

The Current Problem

Progress billing invoices from subcontractors can be a major headache for construction accounting teams. Verifying the amounts against the schedule of values, getting the right approvals, and syncing the data to your ERP is a manual, error-prone process. This leads to payment delays, strained subcontractor relationships, and inaccurate job costing.

• Subcontractors submit invoices that don't match the approved schedule of values
• Approvals get lost in email chains or spreadsheets
• Manually entering invoice data into the ERP is time-consuming
• Visibility into the approval status and payment timeline is poor

The Recommended Workflow

1. Subcontractor submits progress bill invoice in the AP software
2. Software automatically matches the invoice to the approved schedule of values
3. Invoice routes through the appropriate approval chain based on cost code and amount
4. Once approved, the invoice data syncs to the construction ERP
5. Subcontractor is notified of approval and payment timeline
6. AP team can easily track the status and approve invoices on the go
7. Reporting ties the invoice data back to job cost and budget
8. Payments are processed and synced to the general ledger

Tips for Construction Teams

• Require all subcontractors to submit invoices through the AP software
• Set clear policies around acceptable variances from the schedule of values
• Empower field supervisors to review and approve invoices from their mobile devices
• Integrate the AP software with your construction ERP for real-time data exchange
• Use the software's reporting to proactively identify billing issues and resolve them
• Look for an AP solution built specifically for construction, like Vergo

How Vergo Helps

Vergo is a card-agnostic expense management platform built for construction. Connect any corporate or project credit card and get full visibility and control over field spending.

• Job-cost coding at the point of capture — field teams assign job number, cost code, and cost type from their mobile device before the receipt leaves the job site.
• Per-job spend controls — set card limits by project, cost code, or cardholder so spending stays within approved budgets.
• Mobile receipt capture — superintendents and PMs photograph receipts on-site with automatic data extraction.
• Role-based approval workflows — route expenses through project managers, job-level approvers, and controllers based on your org structure.
• Vergo integrates natively with major construction ERPs, syncing coded expenses directly into job cost and general ledger without manual re-entry.

Related Questions

• What is construction AP automation and how is it different from generic AP software?
• How do general contractors manage hundreds of vendor invoices per month?
• What is the cost of processing a single invoice manually in construction?
• What AP automation software integrate with Computerease?