How to Streamline Subcontractor Billing and Retentions
Learn how contractors can streamline subcontractor billing, improve measurement accuracy, track retentions and reduce disputes using digital tools like ProjectBase.
Subcontractors play a major role in completing civil, MEP, interior and finishing activities on time. But managing their billing, measurements, retentions and deductions is one of the biggest challenges for contractors. Even a small mistake in measurement or documentation can lead to disputes, delayed payments and revenue leakage.
Most subcontractor billing issues don’t happen because of bad work. They happen because of poor coordination, scattered records and manual processes. When measurements are tracked on Excel, WhatsApp or handwritten notes, the accuracy drops. When photos are not tagged or approval trails are missing, subcontractors challenge deductions. And when retention values are not updated properly, contractors lose visibility into their financial commitments.
Digital tools solve this. A connected contractor ERP like ProjectBase helps streamline subcontractor billing from measurement to approval and retention release. The result is faster billing cycles, fewer disputes and stronger project control.
Why Subcontractor Billing Is Hard to Manage Manually
Subcontractor billing becomes complicated for five common reasons:
1. Measurements are inconsistent or unclear
Site engineers record measurements in different formats or spread across notebooks, photos and chats.
2. Billing is not linked to BOQ
Without BOQ comparison, it’s difficult to validate quantities and progress.
3. Photos and evidence are scattered
Subcontractors often challenge deductions if photo proofs are lost or unorganised.
4. Approval flow is slow
Billing gets stuck because project managers, quantity surveyors or clients take time to verify.
5. Retention values are tracked offline
Retention and recovery details often sit in Excel, making it easy to miss release dates or deductions.
These issues delay billing and impact cash flow for both contractors and subcontractors.
How Contractors Can Streamline Subcontractor Billing
Here is a practical, contractor-friendly approach to improving accuracy and reducing disputes.
1. Capture Measurements Daily With Proper Documentation
Daily measurement tracking avoids end-of-month confusion. Ideally, measurements should include:
ProjectBase allows site teams to enter measurements daily, with photos and actual quantities tagged to the right BOQ items.
2. Link All Billing to BOQ for Accuracy
BOQ comparison is essential for validating subcontractor claims. When quantities are linked directly to BOQ:
• Overbilling becomes visible • Underbilling is avoided • Work progress is more accurate • WIP updates become reliable
ProjectBase automatically aligns measurements with BOQ quantities so billing remains accurate and defensible.
3. Maintain a Clear, Traceable Approval Workflow
Subcontractor bills often get delayed because approvals happen through WhatsApp messages or scattered emails.
A structured approval flow ensures:
• Site entry • Verification by engineers • Approval by project managers • Cross-check by QS/team • Final submission
ProjectBase centralises all approvals with timestamps and audit trails, making the process transparent.
4. Attach Photos and Evidence to Every Measurement
Photos reduce disputes dramatically. Subcontractors respond better when deductions are justified clearly.
Digital tools help attach:
• Before and after photos • Material usage proof • Work quality evidence • Progress photos
ProjectBase ensures photos stay organised under each activity or bill, so nothing is lost during verification.
5. Automate RA Billing for Faster Cycle Times
When measurements are digital, RA bills can be generated instantly.
A good system should:
• Pull quantities automatically • Show completed vs pending work • Apply deductions • Calculate retentions • Export client-ready formats
ProjectBase generates structured subcontractor RA bills without repeated manual entry, helping contractors submit bills faster.
6. Track Retentions and Recoveries in Real Time
Retention tracking is often ignored until the end of the project. Contractors must maintain visibility into:
• Amount retained • Retention percentage • Release date • Pending recovery • Defect liability period (DLP)
Using Excel for this leads to mistakes.
ProjectBase keeps retention values updated automatically for each subcontractor bill, ensuring contractors never miss release schedules or carry incorrect liabilities.
7. Improve Site-to-Office Coordination
Billing delays happen when site teams, QS and accounts are not aligned. A digital system bridges this gap by ensuring:
• Measurements sync instantly • QS teams verify quickly • Accounts know approved values • Billing follows the right sequence
ProjectBase connects all departments so subcontractor billing becomes a predictable, organised workflow.
8. Maintain a Digital Archive for Audits and Disputes
Projects often face disputes during handover or final billing. A digital record helps answer:
• Quantities completed • Evidence of deduction • Approval history • Retention calculations • Billing timeline
ProjectBase stores all documents, photos, measurements and approvals in one place, making audits simple and reducing disagreements.
How ProjectBase Helps Contractors Manage Subcontractor Billing & Retentions
ProjectBase strengthens subcontractor billing by offering:
• Daily measurement entry • BOQ-linked calculation • Clear approval flows • RA bill auto-generation • Photo and document tagging • Retention tracking • Recovery management • Digital audit trails • Real-time dashboards
Because ProjectBase is built for contractors in India, it reflects the real challenges seen in subcontractor billing—scattered measurements, unclear deductions, slow approvals and manual retention tracking.
Conclusion
Subcontractor billing doesn’t have to be messy. Most problems come from missing measurements, unclear approvals and poor documentation—not from subcontractors themselves. When the process is structured, transparent and backed by proper evidence, billing becomes smooth and disputes reduce dramatically.
Digital subcontractor management tools bring clarity into every stage of billing. Platforms like ProjectBase help contractors move from Excel and WhatsApp to a connected workflow that captures measurements accurately, automates RA bills and simplifies retention tracking.
With the right system in place, subcontractor billing becomes faster, cleaner and far more reliable—protecting margins and improving project delivery. ProjectBase's construction project management software streamlines subcontractor billing with construction budget control software, ensuring accurate measurements, retention tracking and dispute-free payments.
Frequently Asked Questions (FAQ)
Why is subcontractor billing difficult to manage manually?
Because measurements, photos and approvals often sit in different places. When updates come through WhatsApp, Excel and verbal communication, accuracy drops and billing gets delayed.
How does linking billing to BOQ improve accuracy?
When each measurement is tied to BOQ quantities, contractors can validate claims easily, prevent overbilling and maintain clear progress tracking. It also helps during RA billing and client submissions.
Can digital tools reduce billing disputes with subcontractors?
Yes. When measurements, photos, deductions and approvals are recorded clearly, subcontractors see the full justification. This reduces disagreements and speeds up verification.
How does ProjectBase help with subcontractor billing?
ProjectBase captures daily measurements with photos, links them to BOQ, tracks approvals, generates RA bills automatically and maintains a full audit trail. This makes billing faster and more accurate.
Why is retention tracking important in contracting projects?
Retentions affect final payments and liability. Poor tracking leads to missed release dates, incorrect recovery amounts and financial mismatches during handover or audits.
Can retention tracking be automated?
Yes. Digital platforms can calculate retentions for each bill, maintain balances, show pending releases and track DLP timelines. This prevents manual errors.
How does digital site-to-office coordination improve billing?
When measurements and photos sync instantly, QS and accounts can verify faster. This keeps RA billing consistent and ensures subcontractors are paid on time.
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