How Stored Materials Billing Works
Instead of waiting until installation, contractors bill for eligible materials once they’re delivered and properly documented. Owners gain visibility into project readiness while contractors avoid tying up cash in inventory.
- Invoice materials before installation with proper proof
- Show that items are dedicated to the specific project
- Often used with AIA pay applications (G702/G703)
- Supports steady cash flow on long-lead purchases
Documentation Required for Stored Materials
Strong documentation is the key to approval. Provide clear evidence that materials exist, are secured, and belong to the project—then keep an audit trail for lenders and owners.
- Supplier invoices and paid receipts
- Photos with item IDs, quantities, and date stamps
- Storage location details and custody/security info
- Proof of insurance and title transfer if required
Calculations & Common Mistakes
Math errors and missing credits are the most common reasons stored-materials lines get rejected. Align quantities and values to the Schedule of Values (SOV) and carry credits forward properly as items are installed.
- Match quantities and cost to the SOV line items
- Apply previously stored vs. currently stored accurately
- Reduce the stored amount as materials are installed
- Avoid double-billing when moving costs from “stored” to “installed”
Best Practices to Avoid Disputes
Set expectations early with the owner and lender on what qualifies as stored and how it will be documented. Consistent labeling and updates keep approvals smooth.
- Agree on documentation standards in the contract
- Label pallets/serials with project name and SOV code
- Provide monthly photo updates and inventory counts
- Use the same terminology as your AIA forms (G702/G703)
How Software Streamlines Stored Materials Billing
Werx makes stored-materials billing simple by tying documentation, SOV lines, and retainage rules into your pay apps. Generate AIA-style billing, attach proof, and sync to accounting with fewer errors.
- Attach photos, receipts, and custody notes to SOV items
- Auto-calculate “previously stored,” “currently stored,” and credits
- Track retainage on stored materials consistently
- Sync with QuickBooks Online for clean records
Learn more about AIA billing software and how Werx handles stored materials in pay applications.
FAQs About Stored Materials Billing
What counts as “stored materials”?
Materials you’ve purchased and secured for the project—either on-site or off-site—such as equipment, fixtures, and long-lead items. They must be clearly dedicated to the project and properly documented.
Do I need photos or receipts to bill stored materials?
Yes. Owners and lenders typically require supplier invoices/receipts, photos with dates and quantities, storage details, and proof of insurance or custody.
How is retainage handled on stored materials?
Retainage usually applies to stored materials at the same rate as installed work. As items are installed, reduce the “stored” amount and carry value into “work in place” to avoid double-billing.
TL;DR Recap
- Stored materials billing = invoice eligible materials before installation
- Approval depends on strong documentation and clear SOV alignment
- Avoid double-billing when moving costs from stored to installed
- Werx streamlines proof, SOV math, retainage, and QuickBooks sync
