Personal Invoice Document

Table of Content	Sample PID	BIM Personal Invoice Document	Print this Page	Close this Page

1. Personal Invoice Document:

1. Invoicing is a policy and an application service based on formal procedures. See sample by clicking on the button in the top menu.

(1) Sales Personal Invoice Document is prepared by a supplier and addressed to a client to pay according to an agreed contract.

(2) Purchase Personal Invoice Document is provided to a client to pay for goods or services provided by a supplier.

2. Invoicing is a service by the supplier to clients to help the client make the right payment at the right time.

3. Payment delays may be caused by late Personal Invoice Documents, incomplete Personal Invoice Documents, confusing Personal Invoice Documents and Personal Invoice Documents that do not match the clients expectations and contract.

4. Invoicing is done by a service provider to a client based on a contract or accepted quotation that should be referenced in the Personal Invoice Document.

5. Every Personal Invoice Document has two parties: (1) the client who pays and (2) the supplier who gets paid after they have provided the correct information on an Personal Invoice Document.

6. The Personal Invoice Document is just a step on the journey of being paid for work done.

1b. Terminology:

1. It is a Critical success Factor (CSF) that every Personal Invoice Document reflects what the client expects to see and to pay.

2. This CSF can be improved by using identical terminology for every work package as a priced deliverable in the contract and for every Personal Invoice Document line item.

3. Work packages are the only terminology used in a contract and in an Personal Invoice Document.

4. A work package may decribe a contracted:

(1) Deliverable such as a concrete slab or hole.

(2) Labour such as two operatives for 5 days.

(3) Hire of equipment such as an excavator for 4 days.

(4) Supplies such as balast for drains.

5. The Site Manager has a responsibility to report on the completness status of each work package on a weekly basis.

6. A client representative is invited to verify and sign-off each work package when it is complete and correct. The signed off work package documents may be attached to each Personal Invoice Document as evidence of work that is to be paid for.

2. State Transition Process:

1. If the invoicing process is right, then it is more likely that the Personal Invoice Document will be complete, correct and will be paid on time.

2. Every Personal Invoice Document is just a state transiton step as:

(Step 1) Quotation to provide a product service for (1) an amount, (2) by a date with (3) a stated quality.

(Step 2) Contract as an agreed quotation with variations for (1) amount, (2) duration and (3) quality.

(Step 3) Activity of work planned and work done can be shared with the client on a daily basis.

(Step 4) Personal Invoice Document is for activity completed according to the contract.

(Step 5) Payment to match an Personal Invoice Document as acceptance of the contract and activities completed and paid for.

3. Quotation:

1. A company that promtes itself as offering specific types of services, implies that normal commercial rates will be used for those services and is insured to carry out such services.

2. Every quotation has a legal implication that the company can do what is offered, including financing the job in accordance with the payment terms.

3. Where a quotation is to undertake a multi-week project that will be Personal Invoice Documentd at the end of the project, then the company is offering a commercial loan to fund the project for the life fo the project, plus the payment term duration of say a further month. The majority of construction company bankcrupsies is due to cash flow problems - construction companies may not be very good bankers to fund a project with an unsecured loan.

4. The odd job man that the correct process; they make a vague quote, they do the job, they guess at an Personal Invoice Document and they wait to be paid - all in the same day.

5. Construction companies with a weekly wage bill must Personal Invoice Document the client each week, or charge the client for a commercial unsecured loan for the duration until an Personal Invoice Document is paid - high interest rates can be expected. A short term unsecured commercial loan to wait 28 days to be paid will cost an extra 10% on the amount quoted - the client should be fully informed of that this cost is included in the quotation. Every quotation must include a financial plan of how it will be funded and this should be shared with the client.

6. The company that chooses to be honest, open and transparent will win more profitable business than the company that only provides raw guestimates with no details.

4. Contract:

1. The contract is only as good as the quotation.

2. Where the client demands a discount, then that demand is for a lower amount with a longer time scale and a lower quality.

3. It should always be possible to subcontract a job to a cowboy to do a cheap job where that is what the client wishes. It must always be true that when the client demands a discount, that the quotation was inadequate with regard to time scales and quality factors. Ask what in the list of activities detailed in the quotation does the client wish to remove - the quote is a menu of options that the client may choose from. If the client cannot afford what has been quoted, then the company have a duty to provide a more cost effective quotation with a lower quality.

4. An incomplete quotation becomes an incomplete contract that is likely to lead to incomplete payment and a cash flow problem.

5. Activity:

1. Relationships blossem with honest, open and transparent shared information, but it is not easy to engage people shared information.

2. Every day, the client has the right to see and every effort must be made to share:

(1) Daily Register on who is on-site, what activities they are undertaking.

(2) Daily Pre-Start Checklist (DPC) for each person with time sheet information regarding clock-in and clock-out times.

(3) Daily Activity Briefing (DAB) of the planned activities, the hazards and control measures - activity specific risk assessments may be included.

(4) Deliveries and Collections to the site by suppliers and waste collection may be part of the DAB.

(5) Permits for excavations, working at height, lone working, hot works and other hazards are provided as required.

(6) Inspections of equipment and calibration of equipment in compliance with regulations ofr on-site equipment.

3. When the client is made aware of what is undertaken each day, it is more likely that they will understand the pending Personal Invoice Document as a summary of the work undertaken.

4. A weekly email every Sunday evening with a weekly summary of what was completed and what remains to be completed enables the client feel up to date every Monday morning.

5. Any requested or mandatory deviation of activity, means the current contract is not complete and correct and nothing happens until a complete and correct contract is restated with acknowledgement of the deviation. Every person working on the project fully understand that they get paid for what has been contracted and do not get paid for doing any work that is not contracted. The Client making an ad-hoc request for work to be done cannot be Personal Invoice Documentd and people will not get paid for that work until that work is part of a formal contract.

6. Personal Invoice Document:

1. A sales Personal Invoice Document is a summary of a contract and an invitation to pay for work done.

2. The work done is a list of activities completed and reported on a daily and weekly basis.

3. Detailed sales Personal Invoice Documents that summaries daily activities and contracted requirements is what the client wishes to see.

4. Expectations are that each and every Personal Invoice Document is never a supprise, but the logical next step in the continual information flow from supplier to client.

5. Expectations are that payment will follow without any deley because the client has not reason to cause a payment delay.

7. Payment:

1. Payment is the primary objective of the state transition from quotation, to contract, to activity report, to Personal Invoice Document information flow.

2. Where a client is unable to make the agreed payment date, then the client is in breach of the contracted ageeement.

3. Late payment fees are added every 30 days together with late payment charges in accordance with UK laws.

4. The debt is sold to a debt agency after 60 days so professional debt collectors can do what they need to do. This is only practical where a contract exists and complete activity reports exist to substanciate the actual work done.

5. It is likely that 10% of clients will be unable to pay for whatever reason and the company must be structured to expect and manage this 10% loss. Where the client is a contractor, then the statistical possibility of late or no payment increases to 18%.

8. Honest Open and Transparent:

1. Companies that build an honest, open and transparent partnership will have lower overheads and a more stable long term business.

2. Open book accounting is where the suppliers prepares and shares with the client, a detailed quotation of all the costs needed to undertake a project.

3. The project progresses where estimated costs evolve into actual costs in a honest open and transparent way so the client can see if the supplier can sustain the project budget or if more funds are needed to keep the project on track.

4. At the end of the project the project balance sheet will show if the project has a surplus or loss of funds. If the project has actual costs greater than the contribution made by the client, then the client will make good that loss. Where the project has actual costs less than the payments made by the client, then the client will get a repayment.

5. The benefit is that the client gets the job done for the least cost and the supplier does the job without going bankruypt and stalling the partly completed project. The client can make weekly payments to the project budget to ensure the continuation of the project. The client may stop making payments and the clients project stops because no supplier is able to work for no pay.

REASON:

(1) The client is always 100% in control of their own project.

(2) The client makes payments to fund their own project so the client does not have to pay for a commercial bank loan to be taken out by the supplier.

(3) The client knows that the supplier will not go bankrupt and stop part way through the project - with a part built construction that is liable to environmental damage.

(4) The client knows that they got the very best deal and the project could not have been done any cheaper.

(5) The supplier is paid week by week while they are doing what the client has contracted them to do at normal commercial rates.

9. Projects:

1. Projects have three components that are tightly integrated as:

(1) Cost is important but does not have to be the only compoent of a project.

(1) Time can become more important than cost, every day delay in completing an activity can have significant consequential costs.

(1) Quality is the silent component where the experienced engineer can match what the client is willing to pay.

2. When a client asks for a discount, they cannot afford a first class solution and they are happy to accept a lower quality solution - that is what they are asking for.

3. Where a client cannot afford a high quality construction, theymay be able to afford a construction project that takes a lot longer with a lower cost. An inexperienced low-paid team may take a long time to learn on the job, but may be all the client can afford.

4. Only the fool would insist that the client can afford to pay for a first class solution because the supplier is unable to deliver a cheaper solution that matches the clients stated low cost requirement. Quality can be varied and while a low quality solution may not match the suppliers personal taste, if that is what the client wants, then the suppliers can either provide what the client wants or decline the quotation.

5. Materials are available in all kinds of quality to match the clients budget and expectation. When the client is demanding to cut costs, then concrete testing can be done cheaply and the quality of the finish may be within 10 mm of being level.

6. Where a client demands that the lowest possible labour costs must be billed, then the project proceeds with an undefined time scale with people assigned to the project when they have no better paid work to be done. The client always gets what they pay for and when they pay the minimum, then the quality of service is designed to match.

7. Quality of finish is a variable to be minimised when that is demanded by the client to cut costs and provide a discount - every discount is a request to reduce quality by the same degree.

Document Control.

1. Document Title: Personal Invoice Document.

2. Description: Personal Invoice Document, policies and guidelines.

3. Keywords: Personal Invoice Document, policies and guidelines.

4. Privacy: Shared with approved people for the benefit of humanity.

5. Edition: 1.1.

6. Issued: 2 Jan 2018.