Materials, labor, and subcontractors cannot wait for slow-paying clients. Automate your construction invoice reminders and protect your cash flow on every project.
Real frustrations from real construction companies dealing with late payments.
“We had $380K in outstanding receivables last year. Hired a part-time AR person and set up automated reminders. Within 4 months we were down to $95K. The system pays for itself 10x over.”
- Reddit user on <span>r/Construction</span>
“Always file your preliminary notice, even if the state doesn't require it. The minute a property owner gets that notice, they make sure you're on the payment list. It's your single best collection tool.”
- Reddit user on <span>r/Construction</span>
Understanding payment norms in construction company helps you set the right reminder strategy.
These are the specific challenges that make invoice collection difficult in construction company.
General contractors often cannot pay subcontractors until the owner pays them. A single delay at the top of the chain creates a domino effect that puts everyone's cash flow at risk.
5-10% retainage on a $500,000 project is $25,000-$50,000 held for months or even years until final completion and punch list sign-off.
Disputed change orders give owners and GCs an excuse to withhold payment on the entire invoice, even if only one line item is contested.
Conditional and unconditional lien waivers, sworn statements, certified payroll. Missing any one document can delay a payment application for weeks.
Construction companies regularly front $50,000-$200,000+ in materials and labor before seeing a progress payment. Late payments mean borrowing at high interest to cover the gap.
Copy-paste templates tailored for construction company professionals. Adjust timing and tone to match your clients relationships.
Dear {{client_name}}, Pay Application #{{pay_app_number}} for {{amount}} has been submitted for the {{project_name}} project, covering work completed through {{billing_period_end}}. Attached you will find: - Schedule of Values (updated) - Conditional lien waiver - Progress photos Per our contract terms, payment is due within {{payment_terms}} days of receipt. Please let us know if any additional documentation is needed to process this application. Thank you, {{your_name}} {{company_name}}
Dear {{client_name}}, This is a follow-up on Pay Application #{{pay_app_number}} for {{amount}}, submitted on {{submission_date}} for the {{project_name}} project. Payment was due on {{due_date}} and has not yet been received. Please be advised that our subcontractors and material suppliers have payment obligations that depend on timely processing of our applications. We would appreciate an update on the payment status. Please contact us at {{phone}} if there are any issues with the application. Regards, {{your_name}} {{company_name}}
Dear {{client_name}}, This letter serves as formal notice that the outstanding balance of {{amount}} for the {{project_name}} project is now {{days_overdue}} days past due. As provided in our contract and applicable state law, we reserve all rights and remedies available to us, including but not limited to the filing of a mechanics lien and/or bond claim, and the suspension of work. We prefer to resolve this matter amicably. Please contact {{your_name}} at {{phone}} within 5 business days to discuss payment. Sincerely, {{your_name}} {{company_name}}
Skip the manual work: All these templates are built into ChaseBot and sent automatically when invoices are overdue.
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Follow these proven strategies to get paid faster while maintaining strong clients relationships.
Even when not legally required, preliminary notices put property owners on notice of your involvement and protect your lien rights. This simple step dramatically improves payment reliability.
Mechanics lien filing deadlines vary by state and are strict. Missing your deadline by one day can cost you your most powerful payment remedy. Use a tracking system.
If a change order is in dispute, request that the client pay the undisputed portion of the pay application while the dispute is resolved. Do not let one contested item hold up a $200,000 payment.
Set up reminders before, on, and after due dates for every pay application. For construction, where DSO is 83+ days, even shaving 10 days off makes a massive difference in cash flow.
Purpose-built to solve the invoice chasing problem so you can focus on your construction company work.
98% open rate means your clients actually sees the reminder. No more emails lost in spam or ignored in overflowing inboxes.
The moment your clients pays, reminders stop automatically. No awkward follow-ups after payment has been received.
Design your reminder sequence visually. Set the right timing for construction company payment cycles with drag-and-drop simplicity.
Connect your Xero account in 30 seconds. Invoice data syncs in real time. No manual imports, no outdated information.
See how automating your invoice reminders compares to doing it yourself.
Before setting late fees on your invoices, check the legal limits in your state.
Dive deeper into invoice collection strategies and templates.
Explore invoice reminder strategies for similar industries.
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