Billing & change orders · General contracting
Collect on every milestone, on time.
Pay applications bounce over a missing G702 line, and change events go unlogged until the cost is sunk. Approved change orders sit unbilled while retainage ages.
The reality
Unbilled change orders are unfunded work.
Every month the team races the billing cycle: build the schedule of values, draft the AIA G702/G703, reconcile lien waivers, and submit before the owner's cutoff. Miss a detail and the pay app bounces; miss a change event and the GC finances work it can't bill for.
The operator owns the cash cycle. It prepares the pay application, logs every change event the moment it occurs, drives the PCO-to-change-order workflow to approval, and tracks each invoice from submission through payment so nothing aging slips.
How the operator runs billing & change orders
Pay app #7 · Job 2024-118
drafting- Schedule of values updated
- Retainage calculated at 10%
- Conditional waivers — collecting from subs
01Prepare the pay application
Builds the G703 continuation, applies percent-complete and retainage, and assembles the conditional lien waivers.
Change log · Job 2024-118
processing- PCO-022 priced from T&M tickets
- CO-009 — submitted to owner
- CO-009 approval — following up
02Log and process changes
Captures every change event as a PCO, prices it, and drives the change order to owner approval.
AR aging · Owner billings
collecting- Pay app #6 — paid
- CO-008 added to next billing
- Pay app #7 — past 30 days, escalated
03Track to payment
Follows each submitted invoice through approval and release, escalating anything aging past terms.
The outcome
−25% days outstanding on owner billings
Cash collected on every contract milestone.
- Pay applications submitted clean and on the owner's cutoff
- Every change event captured and billed instead of absorbed
- Aging invoices escalated before they stall the cash cycle
Common questions
Billing & change orders
- What does the Billing & change orders operator do?
- The operator owns the cash cycle. It prepares the pay application, logs every change event the moment it occurs, drives the PCO-to-change-order workflow to approval, and tracks each invoice from submission through payment so nothing aging slips.
- What impact does the Billing & change orders operator have?
- −25% days outstanding on owner billings. Cash collected on every contract milestone.
- How does the Billing & change orders operator work?
- Builds the G703 continuation, applies percent-complete and retainage, and assembles the conditional lien waivers. Captures every change event as a PCO, prices it, and drives the change order to owner approval. Follows each submitted invoice through approval and release, escalating anything aging past terms.
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