How do I process field tickets for time and material work in construction AP?

Why T&M Field Ticket Processing Breaks Down in Construction AP

Time and material work generates paper and exceptions faster than almost any other billing type. A single storm-damage repair or change-order scope item can produce dozens of daily field tickets from multiple crews, each with handwritten labor hours, equipment IDs, and material quantities. By the time those tickets reach the AP manager, they've passed through a foreman, a project manager, and sometimes a third-party owner's rep—each handoff introducing delay, lost documentation, or conflicting numbers.

The core problem is verification. Unlike lump-sum invoices tied to a schedule of values, T&M invoices can bill for anything that appears on a signed ticket. Without a disciplined intake process, AP teams routinely encounter:

• Unsigned or undated tickets that can't be verified against field logs
• Missing cost codes requiring back-and-forth with the field before the invoice can be coded
• Duplicate billing when a subcontractor invoices for a ticket already captured in a prior pay period
• Rate mismatches where billed labor rates exceed the rates established in the T&M contract or subcontract exhibit

These breakdowns slow payment cycles, strain subcontractor relationships, and expose the GC or owner to cost overruns that should have been caught at the ticket level.

The Recommended Workflow for T&M Field Ticket Processing

1. Capture tickets at point of work. The foreman or superintendent collects a signed field ticket from the subcontractor or crew lead at the end of each shift or work day. Tickets must include date, crew size, hours by classification, equipment used, and materials consumed.
2. Log tickets by job and cost code immediately. The project engineer or field admin enters ticket data into the project management system the same day, tagging each ticket to the correct job number, cost code, and change order or T&M authorization number.
3. Project manager reviews and approves within 48 hours. The PM confirms that the work described on the ticket was actually performed and authorizes the quantities. Any disputes—incorrect hours, unauthorized equipment, unapproved scope—are flagged before the invoice cycle opens.
4. AP receives the vendor invoice with ticket backup attached. Subcontractors and vendors must submit invoices with all supporting field tickets attached. AP should reject invoices that arrive without complete ticket documentation.
5. Three-way match: invoice, field tickets, and contract rates. AP verifies that invoiced quantities match approved ticket quantities, and that billed rates match the labor rate schedule and equipment rate schedule in the subcontract. Flag any line item where rates or quantities deviate.
6. Code to job cost and route for approval. Once verified, AP codes the invoice to the correct job, cost code, and phase. Route to the PM for final approval, especially if the invoice total approaches or exceeds the T&M authorization limit.
7. Post to ERP and retain ticket images in the project record. Post the approved invoice to accounts payable in the ERP. Attach scanned or digital ticket images to the transaction record so auditors, owners, and project controls teams can trace every dollar back to field documentation.

Tips for Construction AP Teams Handling T&M Work

• Establish a ticket submission deadline. Require subcontractors to submit signed field tickets within 24–48 hours of completing the work. Tickets older than five business days at invoice time should trigger automatic review.
• Build a T&M rate sheet into every subcontract. Labor classifications, equipment rates, and markup caps should be documented before work begins—not negotiated when the invoice arrives.
• Use a unique authorization number for every T&M event. Tie every ticket to a T&M authorization or change order number. This prevents invoicing for work that was never formally approved.
• Reconcile open ticket logs weekly. Project engineers should maintain a running log of approved tickets by cost code. Reconcile this log against subcontractor invoices at each billing cycle to catch omissions and duplicates.
• Automate the three-way match with AP automation software. Platforms purpose-built for construction AP can extract line-item data from T&M invoices, match quantities against logged ticket data, and flag rate deviations before the invoice reaches a human reviewer—cutting verification time significantly.

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.

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