Fleet Management

Construction Fleet Billing Challenges and How to Avoid Them

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The construction industry can be a difficult one to navigate, particularly when it comes to billing. So many construction fleets experience issues getting paid accurately and on time. If you want to solve these challenges, your first step is identifying what they are. Let’s explore the four major issues that construction companies face regarding payment. 

Communication Issues

Communication problems can be a massive hindrance to construction operations. These issues can come up at any point in the process. There may be poorly written terms and conditions in your quotes. In these cases, enforcing price increases down the line may be challenging, and you may face delays in getting paid for your work. Ensure that your contracts are clearly written. You can track your work with fleet management software to prove the number of hours worked along the way. 

Inaccurate Billing

If you’re still performing lump sum bids, you may face issues when adjusting quantity or scope. As a result, you may end up over or underbilling customers. Instead, you should base your billing on unit rates and line items. If anything changes, you will only need to adjust the quantities and recalculate your invoice. To avoid ever overbilling or underbilling, keep meticulous records of line items and hours worked. 

Billing Cycle Delays

The commercial construction world has deadlines when it comes to billing. You must submit your documentation at a specific time to ensure you are paid within the billing cycle. Otherwise, you will have to wait until the next one. That can mean waiting 60 days for payment instead of 30 days. You should always keep track of when your billing cycle closes and submit your documentation on time. 

Non Payment and Liens

Non-payment is the worst-case scenario in the payment process. You may have a customer who cannot afford to pay. Or, you may be dealing with a customer who pays very slowly. When customers don’t pay, you may need to take a lien on their property to ensure you can get paid. However, you’ll usually want to try and avoid this by seeking out customers with good credit and making it easy for them to pay. For example, if you have an app that allows them to pay in person as soon as they’ve reviewed the work, that makes the process far more straightforward. 

Azuga Can Help with Billing!

Azuga is a comprehensive fleet management software that helps with all aspects of fleet management. Our field service management software integrates with QuickBooks and can even help you iron out the complicated billing process. Meanwhile, our fleet tracking technology enables you to track hours so you can ensure that your billing is accurate. Learn more about how we can improve your billing process by trying a demo today! 

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Customer Success Story: All-Lift

“With Azuga, our billing is now based on mutual trust between the technician and customer. We have 100% confidence that we are billing for actual time, which is beneficial for both All-Lift and our customers.”