SOP Templates > Carpentry > Finance & Accounting > Subcontractor Billing Review

Subcontractor Billing Review for Carpentry

The Subcontractor Billing Review workflow helps carpentry contractors manage vendor and subcontractor payments effectively. It covers reviewing invoices, verifying work completion, checking change orders, and securing lien waivers. Managers reconcile billing against project budgets and schedules. By following this process, carpentry companies reduce disputes, avoid duplicate payments, and protect profitability. Clients benefit from timely project progress supported by fairly compensated partners. Teams gain accountability through documented approvals and reviews. With this workflow in place, carpentry contractors can strengthen professionalism, improve efficiency, and deliver projects more reliably while maintaining financial accuracy.

Receive subcontractor pay application or invoice for current billing period

Confirm billing period dates match project schedule and contract terms

Review scope of work billed against actual progress in the field

Walk the site or consult field supervisor to verify completion

Check billing against subcontractor agreement or schedule of values

Ensure change orders are approved and included if applicable

Confirm retainage is correctly applied based on contract

Verify lien waivers are included from subcontractor and lower-tier vendors

Review for math accuracy and supporting documentation (photos, timesheets, etc.)

Route pay app to project manager or leadership for approval

Record approved amount in project accounting system

Schedule payment based on payment terms and cash flow

Notify subcontractor of approval status or request for revisions

File pay app, approvals, and backup documentation in job records