FEDA News & Views

FEDAJanFeb2013

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Contract Billing continued people. They can make or break your application. If you work with them and get them what they need ASAP, they will usually help you out when you need it. For example, if you do not have the proper insurance certificates, they will shoot you an email and give you an opportunity to respond instead of kicking it back." Another practice that's become routine for Dille is to send an email requesting the exact "bill-to" address once the contract is received. "A lot of times the contract doesn't include the exact ship to or bill to, which can become a problem when it's time for billing," she says. "At this time, I also ask if the job is sales tax exempt. Then, I forward the information to our AR person, Stacey Lay, and she sets up the account in our system. It's so important to have the bill-to address at the beginning of the contract because we've had some nightmares after submitting a pay app with the incorrect information. Thirty days later, "A lot of times the contract doesn't include the exact ship to or bill to, which can become a problem when it's time for billing." Billing Clerk Gloria Dille we would get a call requesting that we update the information right away. Unfortunately, our system will not just let us go in and change the bill-to address,so sometimes we would have to credit things out and rerun them under another account." What other common missteps can delay payment? Concealed damage, sending in a late draw request, not including new change orders, improper paperwork or failure to include requested information can add anywhere from 30 to 60 days to wait times. One of the oddest contract requests BRESCO received was to include photos of the doors and alarm system where the customer's equipment was stored. Any mention of labor or installation in an invoice to a school or university will also result in "a kickback," or having a draw request returned without payment, says Dille, who has handled a number of contracts involving schools. Schools are a big customer of BRESCO's and unless their billing goes through an architect, they do not typically use AIA. Instead, they pay from invoices transmitted to them. "In some pay apps, the schools will issue a PO to you for the actual material to avoid sales tax," explains Dille."So when you send them a request for payment,you will also send an invoice summary that will be forwarded to the school for payment for the equipment only.The contractor then forwards it to the school and the school pays us for the product. If one of your invoices includes anything about labor or installation, it will get kicked back. continued on page 43 Jan uar y/Febr uar y 201 3 41

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