Collaborate on Contractor Billing Format for Purchasing with Ease Using airSlate SignNow

Contractor billing format for Purchasing

in today's video we are going to learn that how a contractor is preparing his invoice in perspective of retention amount or the retention money we will see inshallah what is contractor retention invoice how to prepare an invoice with down payment and how a contractor is preparing his invoice without down payment also i will share with you inshallah the real scan copies of contractor invoices so first of all we need to know what is retention amount suppose a contractor is going to build a house for a contractee and they decided that this much will be the contract value and the contract said that i need to keep retention money so when you will complete your work and you will we will be having a warranty period after that i will pay you that money suppose there is a contract value that the contract will finish within one year the building he will construct win in one year and he will give a warranty period more one year so both periods when both periods will expire without any problem then the contractor will pay the retention amount to the contractor suppose a contract has a value of one thousand dollars and there is a ten percent detention out of it so the ten percent retention amount will be paid to the contractor after completion of that period one year construction period and the one year will be the warranty of the building so this is the concept of retention amount or the retention money now i will share with you the invoices that how the companies are preparing the invoices the first invoice without down payment the first invoice submitted by the contractor to the contractee total contract value you need to mention here completed work only 10 percent work has been completed and contractor is going to submit an invoice against this 10 word completion so the 10 is 426 000 there is a terms that they will keep five percent retention amount out of this money and five percent performance bond so total is ten percent retention so they have to deduct from this invoice these two values and any previous payment which contractor has received from the contracting so the balance will be the amount due to the contractor this much this value minus this value this value is equal to this value so this amount he has to receive from contracting now let's see when the contractor is submitting second invoice how he is preparing his invoice now when he is submitting his second invoice so the total contract value will be same now the work completed is 50 before it was 10 now the work is completed more 40 percent than previous work that was 10 so the total value is 2 million okay now the 5 percent retention amount from this value and the 5 percent performance bond from this value will be this so the total is 10 retention amount so any previous payment yes we did receive this payment 383 000 so we need to mention here 383 000 so total this invoice value minus these three amounts then the amount due to the contractor is this much this is the second invoice now we will see the final invoice when the hundred percent work is completed now the third invoice when the contractor has completed his 100 work so the total value of the contract this much the 100 word completed by the contractor so this much value will be and here is the 10 retention amount from this value and any previous payments we have received so we have received two payments one is 383 000 and the second payment we receive 1.5 million so the total of these two payments is 1.9 million so we need to detect from this amount this amount total these three amounts so the remaining value due to the contractor is 1.9 million so the net value of the contract will be this much if we calculate we will make total of these one two three and the four so the total will be this so it will be telling that we are going to receive the total contract value uh with the help of this third or the final invoice so these invoice the 10 percent retention invoice will be given to the contractor after completion of the work period now next thing is first invoice with down payment when a contractor is going to receive a down payment how he is preparing his invoice total contract value is seven million completed work with the first invoice is nine percent so the nine percent of the total contract value will be this value now he has to mention here five percent retention amount okay and the 30 percent advanced payment he received he has to deduct this amount from this value we will deduct the retention amount and the advance payment amount so after that any previous payment so we did not receive other than the advance payment so we will not mention here any other payment so this value minus this minus this value so that this is the total value paid to the contractor now the second invoice with down payment contract value this much the same amount now the contractor has completed 15 percent work total so the 15 percent will be from the this contact value now five percent retention we need to keep it of this value and 30 advanced payment we received earlier as you remember and any previous payment so the previous payment we received already the first invoice here 400 000 so we need to mention here 400 000 so this value minus retention minus advanced payment and minus any previous payment so the total value now due to the contractor is 276 000 now the final advice when the 100 word completed everything is same here the retention amount the 30 advance amount and any previous payments the total of these two invoices 400 000 and here we have 200 000 so the total value is 678 000 now we need to deduct from this value these three amounts so this much will be the due to the contractor this is the final invoice the final amount he will receive and this smart this money five percent retention he will receive after the completion of his warranty period and the construction period so now let me show you an example the real life example this is a contractor invoice which i have a scan copy like this is the progress invoice number one date this date on this date total project cost approved is this much and progress percentage completed the work completed by the contractor is 9.83 of this total contract value amount corresponding to progress should be this one this is that nine point eighty three percent now the deduction is retention money five percent and the performance bond will be five percent so the total is ten percent retention so this these values are out of this value okay and the amount due to the contractor will be this value minus this value will be this value so less previous payments this contractor didn't receive any advance payment or any previous invoice because this is the first invoice so the net due value to the contractor will be 383 7717.59 so there is another example i have here this is an invoice from a contractor on this state reference number and subject progress invoice number one value of the contract this much total value completed work after discount this much so this is the total completed work like some percentage of the word he has completed so 618 000 against that completed world now he has to keep the five percent retention amount and the thirty percent advance amount he has received already so there is no previous payment he received because this is the progress number one the invoice number one so the net amount due to the contractor will be 618 000 minus this value and this value so 400 000 will be due to the contractor so this is the concept of contractor invoice preparation i hope guys you understand how contractors are preparing their invoices in perspective of retention amount and the advance received by them so this is what i have for today guys please subscribe my channel so it keeps motivating me to create more videos for you thank you very much and goodbye