How long do I need to wait for final invoice from the contractor?

12/25/2017 at 10:26:10 AM

A invoice should be quick as job is done. If it says final payment

And weather it dose or not if u have payed last bill and job is complete then all is good.

Invoice may be more detailed so may take a little more time to send it.

Happy holidays

12/25/2017 at 11:24:43 AM

Generally when changes are made during a project, it is a good idea to have a change order signed and agreed upon by both parties otherwise A) your contractor can hit you with unexpected charges at the end of the job with amounts that were never agreed upon B) a client can deny ever agreeing to pay additional amounts for the extras the contractor has done. Both of these situations are messy and unpleasant for both parties. In your situation just make sure that on the invoice you receive it states somewhere final payment so he cannot come back asking for more in the future.

12/26/2017 at 6:01:42 PM

Making sure invoices get raised on time is a vital part of good credit control and helps business cash flow. Until you raise the invoice, you won't get paid. It really is as simple as that. So the sooner you invoice the better.

Remember a customer is not going to chase you asking you to invoice them as they will want to keep the cash. It is really important you keep on top of invoicing otherwise it will seriously affect your cash flow.

However some SME's struggle to get their invoices out in good time. Perhaps business is booming and there just doesn't seem to be enough hours in the day to get all the jobs done.You come to do your monthly or year-end accounts and realise you haven't invoiced a client for a job you completed several months ago, or perhaps even longer than that.

Can I Just Raise the Invoice Now?

Well in short the answer is yes, unless more than six years have passed. The only regulations placing a time limit on collecting a genuine debt is the Limitation Act 1980.

Although you have the right to invoice, where the invoice is over 6 months old we would recommend to include a covering letter apologising for the delay or simply calling your customer beforehand to discuss the matter. This is especially true if the invoice is for a large amount and could cause difficulties at their end when it finally appears!

If they have been prudent then they should have accrued for this bill in their accounts, especially if it is a large amount. However for many businesses a late invoice may come as a shock when they receive the invoice.

As for any invoice, you need to make sure you still have all the information on record required to get the invoice signed off - the clients purchase order, contracts, quotes and proof of delivery such as a signed delivery note or works sign off sheets. This way although they may question the lateness of the invoice they cannot dispute it.

Can I Apply Late Payment Interest?

While you have a statutory right to apply late payment interest and compensation to overdue invoices, since the lateness of the invoice is down to your own error then we would not suggest you apply late payment interest to it.

However, if you have been unable to issue the invoice due to the customer's error for instance if they held things up by failing to issue you with a purchase order number - then you could apply theseadditional charges. You can use our late payment interest calculator to calculate hte amount to add. Backdate the invoice to the day you completed the works again make sure you have your signed contract to hand in case they dispute the invoice.

I would also send him a registered letter asking for your invoice so no late interest charged can be occurred . You don't want him saying ( I tried to send it or I did send it ) ask for a hand delivered invoice .

12/28/2017 at 4:17:46 PM

In general, we want to get final payment so look to get final invoice to client as soon as work is completed. Sounds like there were no signed change orders for the additional work. If you have had a good experience with your contractor then I am sure you will get it in a timely manor.

12/10/2021 at 1:12:10 PM

Hello Tara,

I know that you've probably moved on from this as this was in 2017, but as seeing your from Ontario I was recently reading a court case from your jurisdiction. Generally, as another commentator mentioned a limitation period will apply to a contractor issuing an invoice and being able to claim under it.

Limitation periods exist to give finality to parties. In Hugh Munro Construction Ltd. v. Moschuk, 2011 ONSC 3271 the contractor supplied repair services and goods to the defendant. Other issues where at play such as services provided over a pronged period of time. However for simplicity, the contractor failed to issue an invoice until 2.3 years after it finished performance to the defendant. It was held that a contractor will reasonably issue an invoice upon completion of the work, and terms of payment is usually due in 30 days. The claim was therefore summarily dismissed. It never went to trial as the contractor had waited too long to issue it's invoice.