Additionally, a percentage of interest may accumulate on delinquent accounts. For example, the contractor should specify any required forms of payment, such as certified check. Payment terms could also specify how the customer is to pay the amount and what penalties result for late payment. An invoice with “2.5/10 Net 30” offers 2.5% off the total if paid within 10 days. Contractors can also show the available discount by adding just a couple of numbers. As an example, “Net 30” indicates that the full amount (minus any retainage) is due 30 days from the invoice date. This shorthand communicates the number of days a customer has until payment is due. That’s something we’ll talk about further below.Ĭontractors express some of the most common payment terms in a “Net D” format. These may also offer discounts to help incentivize earlier payment. What Are Construction Invoice Payment Terms?Ĭonstruction payment terms typically specify how long the customer has until cash is due. To customize the template and make it your own, click the link below, and select “File” from the top left menu bar. Not sure how to get started making your own professional invoices? Preview a sample construction invoice below. With all that said, does an invoice have to be written? Is there such a thing as a “verbal invoice”? While contracts can be made with a handshake, requests for payment should be clearly documented and dated in order to protect a contractor’s right to collect. The quantities (such as units, hours) and prices for goods or services.A clear brief or line-item description of the goods or services.
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