What is Actual Cost?

Percentage of completion (POC) is a metric that represents the proportion of work completed on a construction project at a given point in time. It is expressed as a percentage of the total contracted work. The POC is important to subcontractor workflows for several reasons:

• Payment schedules: Most construction contracts stipulate that subcontractors receive payment based on the percentage of work completed rather than a lump sum payment at the end of the project. The POC determines the amount of payment that a subcontractor can request from the general contractor (GC) or the project owner for the work performed during a specific billing period.
• Cash flow management: Subcontractors rely on progress payments to maintain a healthy cash flow and cover expenses such as labor, materials, and equipment. The POC directly impacts the timing and amount of progress payments received, allowing subcontractors to plan and manage their financial resources effectively.
• Project monitoring and control: Tracking the POC helps subcontractors monitor their progress against the project schedule and budget. It enables them to identify potential delays or cost overruns early on, allowing for prompt corrective actions.
• Dispute resolution: In the event of disputes or claims related to payment or project delays, POC documentation can serve as evidence to support the subcontractor's position and substantiate their claims for outstanding payments or compensation.
• Resource allocation: By monitoring the POC, subcontractors can better plan and allocate their resources (labor, materials, equipment, etc.) across multiple projects, ensuring efficient utilization and avoiding resource conflicts or shortages.
• Project closeout: The POC is crucial during the project closeout phase, as it helps determine the final payment due to the subcontractor and ensures that all work has been completed according to the contract terms.

Overall, POC serves as a versatile tool throughout the entire project lifecycle, from initial payment requests to final closeout. And with Siteline, managing POC workflows becomes effortless. Siteline makes progress billing a cinch by:

• Generating custom pay applications with real-time POC calculations
• Offering intuitive dashboards for clear financial visualization and decision-making
• Integrating with GC payment portals for accurate, timely pay application submissions
• Centralizing all documentation for enhanced collaboration and communication

Book a demo today to experience how Siteline can empower your team to make informed decisions, maintain a steady cash flow, and ensure successful project closeouts.

A notice of intent to lien (NOI)—also called a notice of non-payment or intent notice—is a formal legal document warning a property owner, general contractor, or lender that a subcontractor or supplier plans to file a mechanics lien if an unpaid balance isn't settled within a set number of days.

Acting as a final warning before taking legal action, an NOI often resolves payment disputes quickly because property owners cannot sell, transfer, or refinance a property with a mechanics lien attached. While only legally required in certain states (full list here), sending an NOI is a low-cost, highly effective A/R strategy for collecting past-due funds without going through the formal lien filing process.

Notice of Intent vs. Preliminary Notice:

• Preliminary Notice: Sent at the start of a project to preserve your baseline right to file a lien if needed later.
• Notice of Intent to Lien (NOI): Sent after a payment is significantly overdue as a final deadline demand before officially recording the mechanics lien.

How Siteline Helps:
Every state has different lien rules, timelines, and required forms, making it easy to miss crucial notice deadlines and accidentally forfeit your lien rights. Siteline tracks state-specific lien deadlines across all your projects behind the scenes. When an account becomes severely past due, Siteline helps you instantly generate state-compliant lien notices using project data and send them via certified mail—so you preserve your leverage and protect your right to get paid.

A bond claim is a legal demand made against a construction bond to recover unpaid amounts owed by a contractor or project owner. Construction bonds are financial guarantees that protect project owners and subcontractors from financial loss if the prime contractor fails to meet their contractual obligations. When payment or performance issues arise, affected parties can file a bond claim to seek compensation from the bonding company.

There are several types of construction bonds, including payment bonds (which guarantee subcontractors and suppliers will be paid) and performance bonds (which ensure project completion).

For subcontractors, bond claims serve as an important safety net when general contractors fail to pay for completed work. Filing a bond claim can be complex and time-sensitive, often requiring specific documentation and adherence to strict deadlines. However, it provides subcontractors with a path to recovery when traditional collection methods fail, helping protect their business’s bottom line.

Siteline helps protect your bottom line too by streamlining billing processes and providing clear visibility into payment statuses, so you can identify and address collection issues before they require legal action. Learn more about Siteline here.