Final Billing Preparation for General Contracting

Locate the signed owner–contractor agreement, any formal amendments, and fee agreements in the project files. Make sure you have fully executed copies, not drafts, so you are working from the legal documents.

Pull every executed change order, change directive converted to a change order, and any written adjustments to scope that impact price. Create a simple list showing CO number, description, and value (additive or deductive).

Confirm with the project manager and owner/CM (if applicable) that both parties agree on which change orders are approved and included in the contract value. Resolve any discrepancies now rather than after you submit the final bill.

Add the original contract amount plus/minus all approved changes to calculate the final contract value. Write this number down clearly and use it as the reference point for all subsequent reconciliation.

Read the sections covering payment applications, retainage, stored materials, and required backup. Note any special requirements for final billing, such as release of liens, closeout documentation, or specific forms (AIA, owner-specific).

Create a one-page summary that states the final contract value, retainage rules, and key billing requirements. Share this with the project manager and anyone helping with final billing so everyone uses the same assumptions.

Gather every approved pay app or invoice submitted during the project, including any revised versions. If the owner uses a pay app tracking system, export a summary from that system as well.

Create a simple worksheet that lists each pay period, gross billed that period, retainage held, and net payment. Sum the columns to determine total gross billed and total retainage to date.

Check whether the total gross billed so far plus what you plan to bill on the final pay app will equal the final contract value. If you are already at or above the contract value, stop and investigate before preparing any final bill.

If numbers do not line up, look for common issues such as duplicate line items, change orders not carried through, or math errors in prior pay apps. Work with accounting and the project manager to correct the records where needed.

Once you understand discrepancies, adjust your internal reconciliation so it reflects the amounts the owner has actually approved and paid, not just what you originally requested.

Save your billed-to-date summary and notes explaining any corrections. This becomes part of your internal backup in case questions arise during final billing or audit.

List all approved change orders with their reference numbers, descriptions, values, and dates of approval. Include both additive and deductive changes and note which pay app they were first billed on, if applicable.

Compare the change order register to prior pay apps. Confirm that each approved change order has been billed to 100% or identify which ones still have remaining value to bill.

Look at allowance and contingency items in the contract. Determine actual costs incurred versus the original allowance amounts and identify whether there should be a credit or additional billing.

Discuss any remaining change order balances or allowance reconciliations with the project manager and estimator. Agree on the final values that should appear on the last invoice and ensure they align with owner expectations.

Adjust your internal billing worksheet to include the final amounts for all change orders and allowance adjustments, clearly distinguishing them from base contract work.

Write a brief summary explaining how each change order and allowance was handled, including any credits or final adjustments. This narrative can be used later if the owner asks for clarification.

Run a job cost report that shows all costs to date by cost code and vendor. Include both committed costs and paid costs if your system allows and export to a spreadsheet for analysis.

Organize the cost data into groups that align roughly with how you bill the owner (for example, divisions, schedule of values line items, or major systems). This makes it easier to compare internal costs to external billing.

Check whether your total job costs (including overheads if tracked) are below, at, or above the final contract value. This gives you a high-level view of expected profit or loss on the job before final billing.

Scan the cost detail for unusual entries, such as damage repairs, fines, or rework that may not be billable. Mark these so you do not accidentally try to bill them to the owner and cause a dispute.

Based on your analysis, make sure the final billing plan still makes sense in light of actual costs. If significant losses or overages appear, discuss with the project manager and operations leadership before finalizing the invoice.

Save your cost vs. billing comparison and make it available for any internal project review or post-project financial analysis. This document is useful later when discussing project performance.

Re-read the sections that describe when and how final payment can be requested. Look for conditions like “substantial completion achieved,” “punch list substantially complete,” and “all closeout documents submitted.”

Confirm whether substantial and/or final completion certificates have been issued by the architect or owner. If not, coordinate with the project manager to understand when they are expected.

Check your punch list logs to see how many items remain and their severity. Decide with the project manager whether the project is close enough to completion to support final billing or whether a “next-to-final” bill is more appropriate.

List all documents that must accompany the final bill, such as conditional/unconditional lien waivers, updated insurance certificates, bond documentation, and closeout package delivery confirmation.

Confirm with your accounting or legal department which lien waiver forms and wording are acceptable and ensure they align with contract requirements and local law.

Choose a realistic date for final billing submission that lines up with substantial/final completion, punch progress, and availability of all required backup. Communicate this date to the project team.

Send a written request to each subcontractor with instructions for submitting their final invoice, including any outstanding change orders and retainage. Provide a due date that gives you enough time to review before your own final billing date.

Ask subcontractors to include a summary showing original subcontract, approved changes, total billed to date, and remaining balance. This helps you see whether their view of contract value matches yours.

As subs submit final invoices, request the appropriate conditional or unconditional lien waivers based on your payment timing. Ensure the forms meet your company’s and owner’s requirements.

Match each subcontractor’s final billing amount to your internal job cost and commitment records. Resolve any differences, such as unapproved extras or misapplied payments, before you rely on these numbers in your final owner billing plan.

If you disagree with a subcontractor’s final invoice, document the disputed amount and reason. Coordinate with the project manager and, if necessary, your contracts/legal team to plan next steps, such as partial payments or backcharges.

Adjust your internal schedule of values or cost breakdown to reflect confirmed subcontractor final amounts. This alignment supports both your final billing and later tasks like retainage release.

Fill out the owner’s required billing form (such as AIA G702/G703 or a custom template) using your reconciled numbers. Ensure that the “previously billed,” “this period,” and “total completed” columns all align with your reconciliation.

Add any final change order and allowance lines to the schedule of values or appropriate section of the form. Make sure descriptions are clear enough that the owner can quickly recognize what they are.

Apply the contract’s retainage rules to the final billing, noting any changes in retainage percentage at substantial or final completion. Double-check that cumulative retainage matches your earlier reconciliation.

Gather supporting documents such as change order summaries, allowance reconciliations, major subcontractor summaries, and any required certifications. Attach them in the sequence the owner expects to see them.

Sit down with the project manager and an accounting representative to walk through the draft invoice line by line. Ask them to look for inconsistencies with cost reports, prior billings, or contract requirements.

Make any necessary corrections to amounts, descriptions, or backup based on the internal review. Save this as the “draft final” version that will be used when you discuss billing with the owner.

Arrange a short meeting or call with the owner/CM financial contact and, if appropriate, their project manager. Share that the goal is to align on final billing assumptions, not to negotiate new scope.

Send a concise summary showing original contract, approved changes, final contract value, total billed to date, and proposed final bill amount. This high-level view helps the owner see that the numbers are logical.

Point out any significant change orders, final allowance reconciliations, or credits that appear on the final bill. Briefly explain how these amounts were derived so the owner is not surprised later.

Explain how much retainage is currently held, how much you plan to request with this billing, and what conditions you understand to be tied to release. Ask if this matches their interpretation of the contract.

Take notes on any concerns or requested tweaks the owner/CM raises, such as timing of certain billings or preferred grouping of line items. Do not promise changes on the spot; instead, agree to review and respond.

After the meeting, adjust your draft invoice and plan where appropriate and consistent with the contract. Document any agreements reached so they can be referenced if questions resurface.

Using your contract and prior conversations with the owner, list all documents that should accompany the final bill: change order log, allowance reconciliation, schedule of values, subcontractor summaries, lien waivers, certificates, and any required closeout documentation.

Arrange documents in an order that follows the invoice narrative—for example, summary first, then change orders, then allowances, then detailed logs. Number sections or use bookmarks if providing a digital PDF.

Check that totals shown in the change order log, allowance reconciliation, and subcontractor summaries tie out exactly to the amounts on the invoice. Correct any mismatches so the owner is not left reconciling for you.

Generate the correct conditional or unconditional lien waiver forms and any certifications that must accompany the billing. Route them internally or to subcontractors for signature ahead of the submission date.

If submitting electronically, merge the invoice and backup into a single bookmarked PDF. If submitting hard copy, assemble everything into a clearly labeled folder or binder with a cover sheet listing contents.

Do one last scan of the package to ensure all pages are legible, correctly oriented, and clearly labeled. Confirm that nothing appears duplicated or missing before you proceed to formal submission.

Check the contract and with the owner’s team to confirm how final invoices must be submitted (portal upload, email, hard copy, or a combination). Identify the specific person or department who should receive the package.

Send the invoice and full backup package using the agreed method. For digital submissions, confirm that file sizes and formats meet any portal requirements. For hard copies, use a traceable delivery service if not delivering in person.

Immediately note in your internal records when and how the final billing was submitted. This date may drive contractual timelines for review and payment, so it is important to capture accurately.

Ask the owner/CM to confirm they received the invoice and that it is complete from their perspective. This can be as simple as an email reply or an automated system acknowledgment.

Save any confirmation emails, portal receipts, or signed transmittals in your project billing folder. Attach them to your internal copy of the final invoice if possible.

Inform the project manager, accounting, and any leadership who track cash flow that the final billing has been submitted and note when you expect feedback or payment based on contract terms.