Stored material, paid early.
A stockpile is delivered material sitting on site, waiting to be installed. Oversite bills its value early and reconciles it as the material goes in.
What is stockpiling? A stockpile records construction material that has been delivered and stored on site but not yet installed. On unit-price contracts, owners often agree to pay for stored material ahead of installation, so the value sitting in the yard does not tie up the contractor's cash. Oversite records each stockpile against a bid item, bills its stored value early through a fixed-dollar partial payment, and draws that value down automatically as the material is placed and invoiced.
Stored material is where the money gets fuzzy.
Owners advance cash for material in the yard. Tracking what was advanced, what got installed, and what is still owed falls to a spreadsheet.
Spreadsheet advances
Stored quantities and the dollars advanced against them live in a side spreadsheet, kept by hand and reconciled off the pay estimate.
Double-paid material
When stored material gets installed, someone has to remember it was already advanced and price the placement down. Miss it and the owner pays twice.
Reconciled by hand
How much of each pile is left, and how much of its value is still owed, stays a guess until someone reconciles the log against placements by hand.
Set the value once. Oversite draws it down.
Record what is stored
Log the bid item, storage location, start date, and stored quantity. Oversite prices it from the item's unit price and caps the amount at what is still available to stockpile.
Bill the value early
Set a fixed-dollar partial payment for the stored material. It drops onto the next pay request as a stockpile partial payment line.
Draw it down on install
As material is placed on approved inspections and invoiced, it pulls from the oldest stockpile first and bills at a reduced rate until the pile is depleted.
01. Record what is on site.
Stockpile a bid item in a short wizard. Set the storage location on the map, the storage start date, and the stored quantity. Oversite prices the stored value from the item's unit price as you type, and caps the quantity at what is still available after installed and already-stored amounts. Attach a photo of the material and the delivery receipt for the owner's record.
02. Bill stored value before it is installed.
Set a fixed-dollar partial payment against the stored material. Oversite holds it within the project's minimum and maximum limits, then adds it to the next pay request as a dedicated stockpile partial payment line. The advance lowers the stored value owed without changing the stored quantity, because the material has not moved yet.
03. Reconciled automatically as it goes in.
When stored material is placed on an approved inspection and invoiced, Oversite pulls it from the oldest stockpile first. Because the owner already advanced cash, those installed lines bill at a reduced unit price until the pile is depleted, marked on the pay request with an asterisk and a footnote. Once the stockpile is used up, further placements bill at the item's full contract value. Every pay request save updates the current quantity and value on each pile.
Stockpiling, answered.
What is a stockpile in construction billing?
A stockpile is construction material that has been delivered and stored on site but not yet installed. On unit-price contracts, an owner may agree to pay for that stored value early, then reduce the payment as the material is placed.
How does Oversite calculate stored value?
Stored value is the stored quantity times the bid item's unit price. Oversite calculates it when you create the stockpile and updates it as the material is paid down. You change the value by changing the quantity, not by editing a dollar figure.
How does a stockpile get paid?
Two ways. A partial payment bills a fixed dollar amount for material still on site and appears as a stockpile partial payment line on the pay request. As the material is installed and invoiced, it draws from the stockpile and bills at a reduced rate until the pile is depleted.
Why is installed stockpile material billed at a lower rate?
Because the owner already advanced cash for it through the partial payment. Oversite adjusts the installed unit price so the pay request balances against what was already paid rather than charging for the material twice.
How much of an item can be stockpiled?
The amount available is the item's authorized quantity, minus what has been installed on approved inspections, minus what is already stockpiled. A project can also cap stockpiling to a percentage of the authorized quantity.
Is stockpiled material subject to retainage?
Yes. Stockpiled material is retained the same as ordinary work, with no special exclusion for stored material.
See stockpiling on a real contract.
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