Pay apps submitted before GC cutoff
Each one missed can push cash out by a full billing cycle.
Electrical contractors · Invoicing and collections follow-up
Get paid on time for the work your crews already finished
For an electrical contractor, cash flow often depends on paperwork more than performance. A pay app submitted two days after the GC's cutoff waits a full month. A missing conditional lien waiver holds up payment. Retainage sits unbilled for months after substantial completion because nobody remembered to request it. Meanwhile, the company has already paid for copper, gear and payroll.
How it often works today
- Pay apps on AIA G702/G703 forms are built by hand each month from job cost reports, and each GC has a different cutoff date, portal and backup requirement.
- Conditional and unconditional lien waivers are chased by email, and missing ones delay payment on otherwise approved pay apps.
- Retainage on finished jobs goes unbilled because closeout documents, as-builts and O&M manuals are still outstanding.
- Residential and service invoices over 30 days get followed up only when the office manager has a quiet afternoon.
Invoicing and collections follow-up puts every pay app, waiver and retainage release on a calendar tied to each GC's requirements. Overdue service invoices get consistent, polite reminders. The office prepares and a person approves everything, but nothing slips because it lived in one person's head.
The improved workflow
Billing calendar by GC
Record each GC's pay app cutoff, portal, format and backup needs, and generate reminders a week before each deadline for the PM and billing clerk.
Draft the pay app
Pull percent complete and stored materials from job cost in Foundation or Sage into a draft G702/G703, which the PM reviews against actual progress before submission.
Waiver and retainage tracking
Track which lien waivers have been requested, signed and delivered, and list jobs approaching substantial completion with the closeout items needed to release retainage.
Consistent invoice reminders
Send polite reminders on overdue service invoices at set intervals from QuickBooks Online or ServiceTitan, with a person handling any dispute or payment plan request.
How we deliver this: AI automation for small business or fractional CTO leadership, scoped in writing and run over 90 days. See pricing or the sample scope.
What we would measure
Days sales outstanding
The overall measure of how fast billed work turns into cash.
Retainage outstanding over 60 days past completion
Old retainage is often the largest receivable nobody is chasing.
Pay app rejection rate
Rejections usually point to missing backup or waivers that can be fixed upstream.
Where people stay in control
- The PM approves percent complete on every pay app, and the controller or owner approves billing before submission.
- Lien deadlines and notice requirements are legal matters. The system tracks dates you set, but your attorney confirms the rules for each project.
- Reminder messages to customers are reviewed templates. Disputes, collections escalations and payment terms are handled by a person.
Example
Recovering retainage on finished jobs, illustrative
For example, a contractor runs a retainage report and finds several jobs that reached substantial completion months ago, with retainage still held. Each is missing something small: an as-built set, an O&M binder or a final unconditional waiver. With a closeout list per job, the PM clears most items in two weeks and submits release requests. The amounts and timing here are illustrative, but the pattern of forgotten retainage is common enough to check first.
Tools typically involved
What the first 30 days look like
In the first 30 days we would pull your aging report, retainage balances and last three months of pay app dates, and list each GC's billing requirements. Then we would build a billing calendar and pick either pay apps or service invoices to pilot.
Common questions
Can AI fill out our AIA pay applications?
It can prepare a draft from your job cost data and schedule of values, which saves rebuilding the form each month. It should not decide percent complete. That is a judgment the PM makes based on what is actually installed, and GCs will push back on any inflated billing.
Our GCs use different portals like Procore and Textura. Can you automate submissions?
Sometimes, but portal submission is often the step to leave manual. Many GC portals have limited integration options, and submitting is a quick task once the package is ready. The time savings usually come from preparing the backup, waivers and forms, not the final upload.
Will automated reminders upset our homeowner customers?
Not if they are polite, well-timed and clearly from your company. Most customers who pay late simply forgot. We would write the reminders with you, keep them short and stop them automatically when payment arrives. Anyone who replies with a question goes straight to a person.
The business case
Does it pay for itself?
Illustrative defaults for an electrical contractor. Replace them with your numbers.
What this workflow costs today
a month in staff time, before any lost sales
Monthly fee + assumed tools +
Break-even: new clients a month (at first-year value)
Or: staff hours recovered and redeployed
Break-even additional revenue
Value of +1 point of win rate
First 90 days, service fee
Worth a closer lookTest the assumptions
Illustration only, not a forecast or guarantee. Recovered staff time becomes a cash saving only if spending actually declines or the time goes into paid work. Tool costs are an assumption; we replace every number here with yours before recommending a scope.
Invoicing and collections follow-up in other industries
Accounting and CPA firmsArchitecture firmsAuto repair shopsCommercial cleaning companiesConsulting and professional services firmsDental practicesEvent and catering companiesHome remodeling companies
Invoicing and collections follow-up: full guide
Related guides
How to automate invoicing in QuickBooks OnlineDocument processing automation for service businessesHow to measure the ROI of AI and automationAI automation for small business: costs, limits and what pays back
Terms used here
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