Invoicing in the construction industry

Revision as of 12:11, 15 March 2019

An invoice is a document issued by a vendor to a purchaser, setting out the products or services that they have purchased (or have agreed to purchase) and the amount that is payable. Invoices can be sent before or after the delivery of products or services, and typically include a payment due date. An invoice can also be sent after a purchase order has been agreed.

Once it has been agreed, an invoice is a legally-binding document, detailing a debt owed by the purchaser to the vendor.

The information set out on an invoice will typically include:

• Date that the invoice was created.
• Names and addresses of customer and supplier.
• Description of items or services purchased.
• Prices and any added VAT.
• Terms of payment (i.e. how long the purchaser has to pay the invoice).
• Payment method (such as bank account details).

NB The Housing Grants, Construction and Regeneration Act 1996 (also known as the Construction Act) include provisions to ensure that payments are made promptly throughout the construction supply chain. This includes specific provisions in relation to the procedures for making payments.

For more information see: Payment notice.

Related articles on Designing Buildings Wiki

• Accounting.
• Construction invoice fraud.
• Difference between purchase order and invoice.
• Fees.
• Letter of intent.
• Purchase order.
• Record keeping.
• Regular invoicing for architects.
• Subcontractor vs supplier.
• Supply chain.
• The benefits of e-procurement in construction.
• Turnover.