What is Time-and-Material Billing?

Business Interruption Insurance, specific to the construction industry, is a critical coverage type that helps cover the loss of income suffered by a construction business when its operations are halted due to an unforeseen disaster, such as fires, floods, or other significant damages. This insurance can compensate for expenses like paying staff, renting alternative spaces, and even projected profit loss. For instance, if a storm damages a construction site, delaying work, the insurance will provide funds till normal operations can resume. It assists in ensuring the business continues surviving financially during the restoration period, adding a safety net for unpredictable circumstances. Given the nature of the construction industry, which is fraught with various perils, this insurance is of utmost importance.

In the construction industry, a contractor is the party responsible for delivering a project or a portion of it, typically under a formal agreement with the project owner. Contractors oversee labor, materials, equipment, and scheduling to ensure work is completed according to the contract’s scope, quality standards, and timeline.

A general contractor (GC), sometimes called a prime contractor, manages the overall project and hires subcontractors to perform specialized work such as electrical, plumbing, or concrete. Whether a contractor is a GC or a subcontractor, they operate under legally binding terms that outline deliverables, payment schedules, and compliance requirements.

Being a contractor means navigating complex billing requirements—especially on the subcontractor side. Pay applications must match each client’s requirements, include precise documentation, and often wait on a chain of approvals before payment is released. Any hiccup (e.g., a missing lien waiver, the wrong form, an incorrect total) can push payment weeks or even months past due. In an industry where it already takes an average of 96 days to get paid, those delays can put serious strain on cash flow.

Siteline was built to help commercial subcontractors overcome these hurdles. Our software automates pay application creation, keeps lien waivers organized and compliant, and tracks payment status in real time. By streamlining the billing process, contractors using Siteline can avoid lengthy payment delays, strengthen relationships with GCs, and get paid faster.

Accrued revenue is the income a subcontractor has earned for work performed or in progress but has not yet billed (the general contractor or client) or received payment for. This typically happens due to the nature of construction contracts, where payments are often tied to milestones or project completion.

Example: An electrical subcontractor working on a large commercial building is paid based on completed milestones, with invoices due at the end of each month. By June 30th, they've finished 75% of the $100,000 job, but can't invoice until month-end. The $75,000 earned but not yet invoiced is their accrued revenue.

Tracking accrued revenue is crucial for accurate financial reporting, as it reflects the subcontractor’s economic activity for the period—even before invoicing or receiving payment. To gain even deeper financial insights, many subcontractors turn to Siteline. Our tool is tailored to help track pay application statuses and amounts owed, empowering subcontractors to make more informed, strategic decisions. Experience the benefits firsthand by scheduling a Siteline demo today.