What is an Automated Clearing House (ACH)?

A unit price contract is a widely used pricing model in the construction industry where general contractors (GCs) provide a fixed price for each unit of work and material (based on the anticipated quantities specified by the client). The final contract amount is calculated by multiplying the pre-agree unit prices by the actual quantities used or work performed.

This approach allows for flexibility as the total costs adjust to reflect actual usage. Therefore, unit price contracts are ideal for projects with uncertain material and work quantities, helping avoid cost overruns due to miscalculations.

For subcontractors, there are specific considerations when working with unit price contracts. It’s crucial to ensure precise unit price calculations to maintain profitability and implement sound systems for tracking and reporting actual quantities. Clear communication with the GC about quantity changes is also important, and subcontractors should be prepared to justify any discrepancies that may occur.

Siteline—an intuitive A/R management system—simplifies unit price billing for subcontractors, allowing them to:

• Easily input and update unit prices;
• Automatically calculate billing amounts based on reported quantities; and
• Generate accurate, detailed pay applications that show up-to-date unit prices and quantities.

Ready to optimize your unit price billing process? Contact Siteline today to learn how our solution enhances A/R workflows to accelerate payments.

A payment application (or pay app) is a comprehensive collection of documents that construction contractors submit to request progress payments throughout a project. Rather than just a simple invoice, payment applications include multiple forms and supporting documentation that prove what work was completed, which materials were used, and what payment is due. The typical pay app package includes: 

• an application for payment form, 
• a continuation sheet with schedule of values details, 
• lien waivers, and 
• often backup documents like material receipts and payroll reports. 

Payment applications are submitted on predetermined schedules—whether monthly, at project milestones, or when specific percentages of work are completed—and serve as the primary billing mechanism for longer, higher-budget construction projects.

For subcontractors, mastering payment applications is critical because they directly impact cash flow and project profitability. The process involves coordinating between accounting teams, project managers, and vendors to gather all required documentation before submission deadlines. Common mistakes—like using incorrect forms, missing documentation, math errors, or late submissions—can delay payments and disrupt cash flow. Many GCs have their own custom forms and specific requirements, making attention to contract details essential. 

For detailed guidance on navigating the entire pay app process, check out our payment application guide. Or better yet, check out Siteline—built specifically for commercial subcontractors to streamline the entire payment application process. Siteline handles any custom pay app form, assembles all required lien waivers for you and your lower tiers, and tracks change orders to ensure accurate, on-time submissions. Subcontractors using Siteline get paid up to three weeks faster than with traditional manual processes. Request a demo here and see how Siteline puts your pay apps on autopilot so you can focus on the work that matters most.

Subcontractor Default, often seen in the construction industry, refers to the circumstance when a subcontractor fails to fulfill their contractual obligations. This could be due to many reasons - ranging from financial instability and resource unavailability to poor performance or bankruptcy. When a Subcontractor Default occurs, the prime contractor becomes liable, which could lead to significant project delays, increased costs, and potential legal issues. It represents a major risk in the construction industry, which is why many firms secure themselves with Subcontractor Default Insurance (SDI) as a financial risk management tool. Managing relationships with subcontractors carefully, monitoring their performance, and conducting background checks are some ways to avoid Subcontractor Default.