Progressive Billing and Invoicing - Overview

Linarc automates the project financial lifecycle through progressive billing, allowing you to continuously bill clients or receive pay applications from subcontractors as work is completed.

Because every contract is unique, Linarc locks in a pre-configured billing method during initial contract setup. Subcontractors working under a General Contractor select their specific billing method within their project billing configuration. This ensures that all generated pay applications remain strictly aligned with agreed-upon contract terms throughout the project lifecycle.

Understanding Your Billing Method

During contract execution, your workspace is set to one of three primary billing methods:

• Schedule - Progress Based Billing: Dynamically links financial valuations directly to the project schedule. As teams update task completion percentages, Linarc factors in those percentages along with the allocated task budget (including approved Change Orders) to calculate eligible billing amounts.
• SOV-Based Billing: Uses a fixed, approved Schedule of Values (SOV) created at contract execution. During each billing cycle, you claim progress by entering a percentage of completion or a direct dollar amount against specific SOV line items. Line items only update when official Change Orders are executed.
• Budget-Based Billing: Calculates monthly billings based on cost allocations across itemized project budget codes (CSI format). Progress is claimed by percentage or direct dollar amounts tied to active budget categories, backed by real-time expense data.

Contractor-Specific Billing Capabilities

The billing capabilities adapt to your role on the project:

• General Contractors (GCs): GCs can review and bill for self-performed work items. For subcontracted work, GCs receive progress reports from their Subcontractors to periodically update the schedule. On billing day, the actual recorded progress of all items becomes eligible for billing. GCs have the authority to reconcile and override auto-calculated progress percentages before generating a master pay app and submitting it to the project owner for approval.
• Subcontractors (SCs): On billing day, the actual completion percentages of the specific tasks assigned by the GC automatically become eligible for billing. Subcontractors can review and reconcile these progress percentages, generate a pay app, and submit it directly to the GC for approval.
• Stand-Alone Contractors: On billing day, the actual completion percentages of all scheduled tasks become eligible for billing. Stand-alone contractors can carefully review and reconcile their progress, generate a pay app, and submit it directly to their client (whether that is a GC or the project owner) for approval.

The Standard Billing Workflow

The billing workflow is similar across all contractor types and generally follows four key steps:

• Select billable items: Pull eligible work items, stored materials, and approved Change Orders into the current pay application.
• Reconcile values: Review claimed progress percentages or direct dollar amounts, apply contract retainage, finalize the pay app, and submit it to the payor.
• Generate invoices: Once the submitted pay app is officially approved by the payor, the system automatically generates a formatted invoice that can be shared for immediate payment processing.
• Track and archive payments: When the funds are received, mark the invoice as paid in the system, capture the transaction details, and securely archive it for your financial records.

See the following sections to know more:

• Configure PayApps, Invoices, and Beneficiary Bank Details  
• View Billable Items for Current Period 
• Create and Submit Payment Application
• Revise Payment Application
• Generate and Submit Invoice for Payment