Why Construction Receipts Are Critical Project Documents
Construction projects involve large sums of money paid over extended timelines. A single custom home build might involve 8-12 progress payments over 6-12 months. Each payment receipt becomes part of the permanent project record, referenced during lien waiver exchanges, financing draw requests, and final project closeout. A proper construction receipt doesn't just confirm payment; it documents the project's financial history at every milestone.
Essential Elements of a Construction Receipt
- Contractor license number and insurance info
- Project name and address
- Contract reference number
- Payment milestone - "Draw #4 - Framing Complete" or "Progress Payment #3 of 8"
- Amount received
- Retention held to date - running total of retained funds
- Cumulative payments to date - total paid against the contract
- Remaining balance on contract
- Payment method and reference - wire transfer number, check number, draw number
- Lien waiver status - note if a conditional or unconditional lien waiver accompanies this receipt
Construction Receipt Best Practices
Issue receipts immediately upon receiving each progress payment. In construction, payment receipts are often required before the next draw request can be processed, especially on bank-financed projects where the lender requires proof of previous payment before releasing the next funding tranche. Delays in receipts create delays in cash flow.
Include cumulative financial tracking on every receipt. Show the total contract amount, total billed to date, total paid to date, retention held, and remaining balance. This running ledger gives everyone, contractor, owner, and lender, a clear financial snapshot of the project at each payment point.
Reference lien waivers on each receipt. Construction payment and lien waivers go hand-in-hand. Note whether a conditional or unconditional lien waiver is being exchanged with the payment. This documentation is critical for title companies during property sales and protects the property owner from mechanics lien claims.
Generate Construction Receipts That Meet Industry Standards
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