Real construction is no child’s play, and it isn’t effortless ensuring you can bring your designs to life. Many times, you forget to set up your payment details. Even worse, you may set up payment only to not get paid.
This is one reason many individuals have considered if an invoice app works great without a contract. Despite many contradictions, an invoice app works great without a contract, and this is because there is information that confers legality other than a contract.
Here’s detailed information on why you should still consider using an invoice app without a contract.
What is an invoice app?
An invoice app gets you automated invoicing and estimates, and they are applications that allow you to create an invoice for your business. Usually, an invoice app has sufficient storage so you can search for your client’s invoice.
Invoice apps usually come with various templates you retain as they are edited. It is advisable to edit the templates as it ensures you get an invoice consistent with your brand. It is also essential because it helps you include things that are peculiar to your business or the industry you play in.
The additional information you can include is due dates, terms, signatures, taxes, billable taxes, and different payment options, amongst others adding additional services or items.
With an invoice app, you can instantly send an invoice or an estimate to a client without any paperwork. They are easy to use, will save you a lot of time, and help reduce errors when appropriately inputted and perform efficiently.
They are beneficial for small businesses servicing clients of a different language. If you do not speak the customer language and struggle to create an invoice without understanding the language, an invoice app can get it done quickly and save time.
Additionally, with an invoice app, you can send invoices automatically to your clients, accept payments and create and automate follow-up messages to clients.
An invoice app saves you the time and effort you’d spend brainstorming and creating an invoice from scratch. You can quickly build from an already-prepared template.
The main benefit of using an invoice app is the time and effort it can save your business. It keeps your business organized. With mobile versions of an invoice app, you can sort out your billings on the go. You get to have no excuses for not sorting out the billing information. With an invoice app, you are only a template away from billing effectiveness.
Do invoices serve as a contract?
No, they don’t. Invoices and contracts are crucial documents for independent contractors, but they are entirely different. This means that an invoice doesn’t replace a contract neither does a contract replace an invoice.
Essentially, an invoice allows you to request payments from your clients. They are usually sent out before or after the services have been rendered or after the products have been delivered. Invoices generally detail the product or service being provided, the details of payment, when the payment is due, and the payment terms. Other information may be included depending on what the invoice is for.
On the other hand, a contract is primarily a legal document that shows the work expectations between two individuals, and a contract keeps both parties informed on what they should and should not do.
The contract details are not cast in stone and are decided based on the agreement between both parties. They are to afford some protection to both parties to ensure that the deal does not default. The supplier delivers on the job as when due and will get paid when the payment is due.
While an invoice has to be written or typed, a contract can be verbal. Emails and texts may also serve as contracts if they detail an agreement.
The significant advantage here is that the invoice is a billing document, but a contract is a legal document that offers legal protection. Although an invoice isn’t a legal document, you may include some information on it to ensure that it proves some agreement happened between you and the customer.
A meaningful way to do this is to get your invoices signed. A signed invoice can be said to be legally binding and proves that both parties agreed to the details in the invoice. Moreso, if there are terms in the signed invoice, you can take legal action if any of the terms have defaulted.
You can create a template on your invoice app and add terms to your invoices. Remember to use words that are custom to your business. It would be best if you consider getting legal advice before you do this, but it is crucial to consider common disputes you can have with customers and put in clauses that ensure it does not happen.
Do You Need a contract for real construction?
If you constantly encounter disputes with your clients and you’re getting cheated, you should consider getting a contract. Contracts help resolve misunderstandings that may arise as you go about your construction projects.
Here are a few things to include in your contract to keep you protected:
- Include a clause that covers you if a client cancels a construction project. You must get some payment that covers your work and the materials you bought for the project. This payment is referred to as a “kill fee.”
- Include a clause that protects the client from adding more work to the agreed job descriptions without getting additional compensation. If the job is to construct a restroom, the client must pay another fee to get this done if the client decides they need a store. It is safer to send another quote or invoice for additional projects the client may require you to work on.
- Provide specific details for emergencies that may hinder you from completing the project. Particular issues may arise that can impart your ability to finish the construction project, such as injuries sustained at the site or an illness. You need to provide specific details on what happens next. How much of the project fee will be refunded, and if you play a part, will you get another contractor to continue the project?
- Payment for your work. You want to ensure that you get paid in full for your work. Be sure you put stipulated payment dates at different project stages if you’re getting settled in batches. If you’re getting paid upfront, include the latest payment date.
- State in the contract what is expected from you. This will protect you from any expectations your customer may have that are not accounted for in your invoice. This will also help ensure that both of you agree on the full scope of work.
If you’re going to use an invoice app to create an invoice without a contract, be sure to include the following:
1. State your client’s name and contact information I
Asides from helping your organization, it is important to state who you’re working for. If you are also working with other contractors known to the customer, be sure to include their details, so it serves as an agreement between all the parties involved.
2. Project Description and Scope
This will cover all you need to get done as regards the construction. State precisely everything you’re expected to do, including all necessary details. This is to manage expectations and to ensure that the customer cannot default in payment under the guise that there was more work to be done that you didn’t do.
3. Project Deadlines
Be sure to include details on when the payment is due. If there are milestones, be sure to include those too.
4. Provide Pricing and Rates
The billing information should be as detailed as possible. Every charge, including how much the building materials will cost (if you have to buy any), should be included. You should also include your rates based on how you charge, and your minimum hourly rates and the full-service charges should also be detailed.
5. Payment Information
Your customer needs to know the various payment options available to them. Be sure to include all payment schedules, payment options, and plans. If you’re sending an invoice before starting construction, use residential construction estimating software.
If you had previously agreed to be paid in installments, list the installment payments and when they’re expected. Also, include any late fees charges and policy.
You may decide to create an entire column for the materials. List everything, including the quantity and their prices.
6. Include Terms
You must hire legal help or be very thorough in excelling. You need to write terms that protect you in the case of any scenario that may arise. Think through any issues and draft clauses that keep you in check.
7. Invoice Number
This is primarily for tracking purposes, making it easier to search out invoices quickly.
8. Labor
You may include the cost of hired labor in your construction invoice. Include what they will be doing and their individual and total costs.
9. Other
This part should carry everything miscellaneous, from rentals to other extra fees incurred. Be sure to add a description, individual fees, and total fees.
This clear breakdown gives the customer a concrete total to look at and removes the guesswork.
