WorkflowSupply Chain, Procurement & Finance

Contractor Invoice Validation

Contractor invoice validation that pays for the work done in the field, at the contracted rate, and holds the rest with proof

Pay for the work done, at the contracted rate.

See one case, screen by screen ↓
demo$20,961heldwith proof on one $204,436 civils invoice: 5 lines short-paid, each with its evidence attached
target1–2%of contractor invoice value held with proof, before it is paid
demo$833,401stoppedbefore payment this year, 2.00% of $41.6M of contractor invoices, each dollar with its evidence
target100%of invoice lines tied to a contract rate and a field record before payment
The problem

Why contractor quantities get paid on trust

Contractor invoice validation means checking each line a contractor bills against two things: the rate in the signed contract and the work actually done in the field. Civils firms dig trenches and joint bays, line contractors rebuild overhead circuits, tree contractors clear spans, metering firms exchange meters, and each bills monthly against a schedule of rates: by the metre, the item, the hour and the plant day. The contract administrator has the rate in a contract PDF, the quantity on the invoice, and the evidence spread across the field app, the plant hire portal and a scanned handwritten daily report.

So the rate gets checked and the quantity does not. Nobody measures the trench. Contractors bill to the design length, and a route shortened in the field never reaches the invoice. The same patterns come back: plant billed for days after it was off-hired, overtime without a signed timesheet, handling above the contract cap, night uplifts without a written instruction, the same week billed on two invoices. Costs that cannot be traced to source documents are also what a regulator questions in a storm or capital cost review.

typical0.5–3%of construction spend owners typically recover by enforcing their contracts
typical10–20minper contractor invoice when each one is matched by hand, at more than 400 invoices a month
Where an invoice's review minutes goestimated
By hand18 days
With the solution2.3 days
  • Reading the invoice and checking the arithmetic3 → 0.3 d
  • Finding each line's rate and clause in the contract4 → 0.3 d
  • Matching quantities to site reports, timesheets and hire logs6 → 1 d
  • Checking earlier invoices for the same week or item2 → 0.2 d
  • Writing the short-pay or query notice3 → 0.5 d

Estimated split for one monthly civils invoice of about 16 lines, in minutes, by hand and with the solution. By hand, the field quantities are mostly taken on trust.

How it works

How an invoice moves

Seven specialist agents tie every invoice line to its rate and its field evidence; the contract administrator decides.

What comes in
Invoice in16 lines · invoice, rate card, GPS survey, telematics, site reports
Agents at work
Invoice readerlines + totals
Then
Rate checker
Field quantity checker
Field report reader
Plant and labour reconciler
Then
Duplicate and period checker
Query writernotice + evidence
A person decides
Contract administratorapproves, short-pays, queries
What comes out
Matched lines paid
Notice with proof
Recovered ledger
One case, step by step

One civils invoice, from the supplier portal to a settled notice

Brackwater Civils builds the Elm Vale Road LV reinforcement for Lumina Utilities under the Network Civils Framework, Lot 2. On Tue 13 Oct 2026 at 06:42 its September invoice arrives through the supplier portal: 16 lines, $204,436.00 before tax. Here is what happens next, screen by screen, in the working solution.

  1. 0106:51

    The invoice opens already tied out

    Leah Brennan · Contract administrator

    Leah checks 60-plus contractor invoices a month across four frameworks. BWC-2609-0418 opens on three columns: what the contract says, what the invoice claims and what the field shows, with each line wired to its rate on the left and its evidence on the right. Nine lines are matched, two are queried and five are held. Payable today: $178,879.00.

    “I can check the rate. I can't check the 480 metres.” — Leah Brennan

  2. 0206:42–06:51

    Nine minutes, every line checked

    Seven agents

    The invoice reader takes the PDF from the supplier portal: 16 lines, totals agree, period September 2026. The rate checker maps every line to schedule of rates v3 and finds the clause 14.3 cap broken on line 10 and the clause 9.2 condition unmet on line 13. The field report reader adds up four handwritten site reports, 96 + 104 + 112 + 98 = 410 m. The duplicate and period checker compares nine earlier Brackwater invoices and finds line 3 already paid in August.

    “Leah Brennan decides · 9 lines ready to approve · nothing is paid or sent until she does”

  3. 03Line 4

    480 metres billed, 410 metres dug

    Field quantity checker

    Brackwater billed 480 m of footway trench at $186.50, the length of design rev B. Rev C, issued 3 Sep, stops the run at joint bay JB3 outside no. 41. The GPS as-laid survey measures 409.6 m from 164 points, the excavator track 411.2 m, and the crew's four daily reports 410 m. With a tolerance of 2% or 5 m, the most that can be paid is 418.2 m. The proposal: pay 410 m, $76,465.00, and short-pay 70 m, $13,055.00.

    From the crew's own report of 10 Sep: “Route ends at JB3 per rev C.”

  4. 04Line 8

    Six excavator days billed, four on hire

    Plant and labour reconciler

    The 14 t excavator with operator is billed for 6 days at $1,240.00. Quarrell Plant Hire's telematics show 7.6, 8.2, 7.9 and 6.8 engine hours from 7 to 10 Sep, then 0.0 hours at the depot on 11 and 14 Sep. The machine was off-hired on 10 Sep at 18:10, and the foreman wrote “Ex 14t off hire 18:00”. Two days, $2,480.00, are held.

    The ducts follow the trench: 2 × 410 m = 820 m, so 140 m of duct on line 6 is held too, $1,988.00.

  5. 05Lines 12 and 13

    What needs a question, not a hold

    Rate checker

    Clause 9.2 pays the night working uplift only where the Employer has instructed it in writing before the shift. No instruction is on file, and road permit RP-26-3318 allows working hours of 09:30–15:30 only, so three shifts, $3,540.00, are queried. On line 12, three weekly sheets are signed for 38 of the 46 overtime hours; the 8 hours on Sat 12 Sep have no signature, so $1,056.00 is queried.

    On line 12: “ask Brackwater for the signed sheet, or Samir to confirm.”

  6. 06Decided

    Sixteen lines decided, each by name

    Leah Brennan · Contract administrator

    Leah accepts the proposals: 9 lines approved, 5 short-paid ($20,961.00) and 2 queried ($4,596.00). Each line now carries its decision, and line 4 reads “Short-paid by Leah Brennan · $13,055.00 to the notice”, with Undo beside it. She could query line 4 instead, or pay any line as billed with a reason that goes to the audit trail.

    16 of 16 lines decided · payable after decisions $178,879.00 · AP run Thu 15 Oct · paid 12 Nov on 30-day terms.

  7. 0707:20

    The notice goes with its proof

    Query writer

    The query writer has drafted the payment notice under clause 22.4, addressed to Gareth Pell, Brackwater's commercial manager. Each of the seven disputed lines lists the evidence attached: the paid August invoice and the road permit, the GPS survey, excavator telematics, daily field report and design revision C, the contract and the supplier invoices, the timesheets. Leah reads it and sends it at 07:20.

    “Undisputed amount $178,879.00 is released to AP today and paid on 12 Nov.”

  8. 0811:05

    The contractor agrees, from the supplier portal

    Gareth Pell · Commercial manager, Brackwater Civils

    Gareth replies in the supplier portal: “Lines 3, 4, 6, 8 and 10: agreed, credit note to follow. Line 12: signed sheet for Sat 12 Sep attached. Line 13: withdrawn, the night shifts were our choice.” The query writer reads the reply: $24,501.00 agreed, and the signed sheet for line 12 matches Samir Haddad's diary. Releasing the $1,056.00 waits for Leah's approval.

    “If you're short-paying, show me the measurement.” — Gareth Pell, before the notice

  9. 09The ledger

    Every dollar stopped, with what showed it

    Victor Lindqvist · Internal audit manager

    The recovered-overbilling ledger now stands at $833,401 stopped before payment this year, 2.00% of contractor invoice value, with $20,961.00 added today from Brackwater. By cause, quantities over field evidence lead at $333,303, then labour hours and plant days. Each entry opens its evidence, for internal audit's quarterly sample and the report to the board.

    “Show me the evidence behind every dollar we stopped — and every one we paid.” — Victor Lindqvist

  10. 10The pattern

    The third time to the design length

    Leah Brennan · Contract administrator

    Brackwater's billing record shows the share of each invoice payable without a query or a hold: 98.4% in July, 94.1% in August, 87.5% in September, against a target of 98%. Trench billed to the design length rather than as-laid has happened three times: Hallam Way 22 m in June, Ferris Lane 31 m in August, Elm Vale Road 70 m in September. Below 95%, the contract manager raises it at the quarterly review.

    Patterns that recur: handling on materials at 15%, cap 8% — August and September invoices.

Who it’s for

Built for everyone who touches a contractor invoice.

The same invoice, seen by the five people who answer for it — what their month looked like, and what it looks like now.

LB
Leah BrennanContract administrator, Civils and Networks · approves up to $250,000 an invoice
Contract administrator
Before
Checks 60-plus contractor invoices a month across four frameworks, rate by rate, with the quantities taken on trust. “I can check the rate. I can't check the 480 metres.”
Now
Opens each invoice already tied to its rates and its field evidence, decides line by line and sends the notice with the proof attached.
SH
Samir HaddadField supervisor, Network Civils North · signs timesheets and daily reports on 6 live schemes
Field supervisor
Before
Signs for what was dug. “I signed for 410 metres. I know what we dug.”
Now
Is asked only when a measurement is disputed or the evidence is below 0.85 confidence, and sees the survey, the track and the day's report on one map.
RC
Ruth CastellanoAccounts payable lead · pays released amounts on 30-day terms
Accounts payable lead
Before
Pays on 30-day terms and chases holds. “Tell me what to pay today and what is held, with a reason I can give them.”
Now
Gets the undisputed amount released the day the invoice is decided, and every held dollar with its line, its reason and its notice.
VL
Victor LindqvistInternal audit manager · samples contractor payments each quarter
Internal audit manager
Before
Samples contractor payments each quarter. “Show me the evidence behind every dollar we stopped — and every one we paid.”
Now
Reads a ledger where every stopped dollar opens its survey, telematics extract, report line or clause, by cause, contractor and month.
MO
Marta OyelaranHead of contract management · countersigns above $250,000 and owns the rules
Head of contract management
Before
Countersigns invoices above $250,000 and answers for how tight the tolerances are and who decides.
Now
Sets them once as versioned rules: she tightened the quantity tolerance from 5% to 2% or 5 m once measured quantities came from GPS surveys.
Built on the engine

7 agents. Each with one job, and hard limits.

Seven specialist agents tie every invoice line to its rate and its field evidence; the contract administrator decides.

Invoice reader

Reads each contractor invoice from the supplier portal or email: every line with its description, quantity, unit, rate, amount and work order, the markups and the period. Checks the arithmetic and the totals.

  • Never edits the contractor's figures
  • Flags what does not add up
Rate checker

Maps every line to its schedule-of-rates item and clause in the contract version in force for the period, and checks the rate, the unit, handling caps and the conditions on night, weekend and standing-time uplifts.

  • Uses signed contract versions only
  • Never applies a rate that is not in the signed contract
Field quantity checker

Measures each billed quantity from the field evidence: the GPS as-laid survey, the excavator's telematics track, the current design revision, as-builts, photos and the daily reports, and compares it with the billed quantity and the tolerance.

  • Never measures from the design alone
  • Below 0.85 confidence, asks the field supervisor
Field report reader

Reads scanned daily site reports and timesheets, handwritten included, and transcribes chainages, metres, plant on site, crew and hours.

  • Quotes the sentence for every figure it uses
  • Says when a word is unclear
Plant and labour reconciler

Ties plant days to hire logs and telematics, and labour hours to signed timesheets, applying the contract's overtime and standing-time rules.

  • Never changes a timesheet or a hire record
Duplicate and period checker

Compares every line with the contractor's paid and pending invoices, three years back, and with the billing period, to find the same item billed for the same week twice.

  • Never rejects a whole invoice
Query writer

Drafts the short-pay and query notice under clause 22.4, each disputed line with its measurement, clause and evidence attached, and reads the contractor's reply when it comes back through the supplier portal.

  • Never sends — the contract administrator sends
Contract administrator

Decides every line, sends every notice. The agents propose; a named person decides.

Ask in plain words

Ask about any invoice, in plain words

Ask about any invoice, line, rate or contractor — or say what to approve, short-pay or query. Nothing is paid or sent until the contract administrator decides.

Why is line 4 held?

Brackwater billed 480 m of footway trench, the length of the old design, rev B. Rev C stops at JB3 outside no. 41. The GPS as-laid survey measures 409.6 m, the excavator track 411.2 m, and the crew's own report says “Route ends at JB3 per rev C”. Tolerance is 418.2 m, so the proposal is to pay 410 m and short-pay 70 m, $13,055.00.

Accept the proposals on the Brackwater invoice

Done: 9 lines approved, 5 short-paid ($20,961.00) and 2 queried ($4,596.00). Each short-pay carries its evidence: the survey, the telematics, the August invoice and clause 14.3. $178,879.00 is ready for AP. The notice is not sent until you send it.

Has Brackwater billed to the design length before?

Yes, twice this year. Hallam Way in June, 22 m over the as-laid survey, and Ferris Lane in August, 31 m over, settled by credit note. Elm Vale Road makes it three. Their value matched first time fell from 98.4% in July to 87.5% in September.

What have we stopped this year, and why?

$812,440 stopped before payment on $41.6M of contractor invoices, 1.95%. The largest cause is quantities billed over the field evidence, $318,260, then labour hours $196,410 and plant days $142,380. Every entry links to its evidence for internal audit.

Every screen

The working solution, as it ships.

13 screens from the working solution, on its sample data. Pick one to see it large.

The invoice tie-outContract says, invoice claims, field shows: every line tied to its rate and its evidence, with the line inspector for the 480 m trench.
The run logSeven agents from 06:42 to 06:51, each step with what it found, ending with the decision left to the contract administrator.
The job, measuredDesign rev B and rev C, the GPS points, the excavator track and the trench dug day by day, beside the scanned field report and its transcription.
Plant days against telematicsSix excavator days billed; engine hours show four on hire and two at the depot after the off-hire.
An uplift without an instructionThree night shifts queried: clause 9.2 needs a written instruction, and the road permit allows 09:30–15:30 only.
Every line decidedApproved, short-paid or queried, each by name with Undo, and the amount payable after decisions.
The notice with its proofSeven disputed lines, each with the evidence attached, and the undisputed amount released to accounts payable.
The contractor's replyThe disputed lines with their evidence, and Gareth Pell's reply from the supplier portal, read for a decision on line 12.
Recovered overbillingStopped before payment by month and by cause, and a ledger where each entry opens its evidence.
Contractor invoicesThis month's invoices across civils, overhead line, vegetation, water and metering, each split into payable, queried and held.
A contractor's billing recordValue matched first time by month against a 98% target, the patterns that recur and every invoice from the contractor.
The schedule of ratesEvery rate item with what was billed against it this month, and the contract clauses the agents apply, quoted from the signed contract.
Your rulesTolerances, the evidence each line type needs, who decides, and every change to the rules with its reason.
Governance

Built to stand up to audit: cited, decided by name, on the record.

Every finding cites its sourceEach held or queried line points to what showed it: the survey file and its points, the telematics extract, the line of the scanned field report, the clause of the contract version, the timesheet, the earlier invoice.
A person decides every lineThe agents propose. The contract administrator approves, short-pays, queries or pays as billed, and a notice is sent by a person, never an agent. The field supervisor confirms a disputed measurement.
Undisputed lines are paid on timeOnly the disputed amount is held. The undisputed sum is released to accounts payable the day the invoice is decided and paid on the contract's terms, so nothing the contractor is owed waits on a query.
Authority limits, built inThe contract administrator decides up to $250,000 an invoice; above that the head of contract management countersigns. Paying a line as billed over $5,000 needs a reason and a second approver.
Rules the agents cannot changeTolerances, the evidence each line type needs and who decides are set by contract management. Every version is kept, and each invoice is checked against the version in force when it arrived. The agents never change an invoice, a timesheet or a hire record.
A ledger internal audit can sampleEvery agent step and every decision is recorded with its time and its author. The recovered-overbilling ledger links each stopped dollar to its evidence, by cause, contractor and month.
Configuration

Your contracts' rules, not ours

Tolerances, the evidence each line type needs and who decides are settings, chosen by contract management and kept as versions.

SettingDefaultChoose from
Measured quantities2% or 5 m, whichever is greater1% or 2 m · 2% or 5 m · 5% or 10 m
Plant daysMust match telematics or the hire logTelematics or hire log · Hire log only
OvertimeSigned timesheet, 0 h tolerance0 h · 2 h a week
DuplicatesSame item, same week, any earlier invoiceAny earlier invoice · Last 12 months
Field supervisor asked when confidence is below0.850.75 · 0.85 · 0.95
Evidence each line type needsTrench and duct: GPS as-laid survey or as-built drawingRequired or optional per line type — reinstatement: highway inspection sheet · spoil: tip tickets · plant: telematics or hire log · overtime and uplifts: signed sheet, written instruction · joint bay photos: optional
Approve, short-pay, queryContract administrator, up to $250,000 an invoiceAbove $250,000 the head of contract management countersigns
Pay as billed over $5,000Needs a second approver and a reasonThe reason goes to the audit trail
Connections

Works with the records a contractor invoice already rests on

Contractor invoicesfrom the supplier portal or email, with the contractor's paid and pending invoices
Contracts and schedules of ratesframework contracts, rate versions, indexation and clauses
GPS as-laid surveys and design revisionsGNSS rover surveys, as-built drawings and the current design revision
Plant telematics and hire logsengine hours, on-hire and off-hire dates from the hire company
Daily site reports and timesheetsscanned and handwritten, with chainages, metres, crew and hours
Work orders and site recordsroad permits, tip tickets, highway inspection sheets, cable scans and photos
What it changes

The difference, in numbers.

Every figure is labelled: a target the solution is built to, an estimate, a typical published result, or a proven one.

target
1–2%
of contractor invoice value held with proof, before it is paid
target
100%
of invoice lines tied to a contract rate and a field record
16 of 16 lines
tied out by 06:51
typical
<3min
of review per invoice, instead of 10–20
By hand10–20 min
With agents2–3 min

“demo” = seen in the working solution, on its sample data · “target” = the design goal, measured in the live solution · “estimated” = our estimate of how an invoice's review minutes split · “typical” = published figures (Daily Reporter/BridgeTower, construction audits: owners typically recover 0.5–3% by enforcing their contracts; a utility's DistribuTECH presentation: more than 400 contractor invoices a month at 10–20 minutes each, vendor-reported). Regulatory context: Florida PSC storm cost audits trace contractor costs to source documents. Lumina Utilities, Brackwater Civils and every person, contractor, street, scheme and record named on this page are fictional — characters and sample data in the working solution.

Questions

What contract management teams ask us.

What is contractor invoice validation?

It is the check that each line a contractor bills matches the rate in the signed contract and the work done in the field. Contractor Invoice Validation does it on every invoice the morning it arrives: seven agents tie each line to its rate and its field evidence, and the contract administrator approves, short-pays or queries.

How does contractor invoice validation software for utilities work?

The invoice reader takes the invoice from the supplier portal or email. The rate checker maps each line to the schedule of rates and clauses; the field quantity checker, field report reader and plant and labour reconciler check quantities, hours and plant days against the field records; the duplicate and period checker looks for lines already paid. The query writer drafts the notice, and a person decides and sends it.

How does it check quantities against the work done in the field?

It measures from field evidence, never from the design alone: the GPS as-laid survey, the excavator's telematics track, the current design revision and the crew's daily reports. In the sample case 480 m of trench was billed to an old design; the survey, the track and the reports all gave 410 m, so 70 m was short-paid.

Can it read handwritten site reports and timesheets?

Yes. The field report reader reads scanned daily site reports and timesheets, handwritten included, quotes the sentence behind every figure it uses and says when a word is unclear. Below 0.85 confidence the field supervisor is asked to confirm.

Does it catch duplicate billing, plant after off-hire and markups above the contract cap?

Yes. The sample invoice shows each: a traffic management week already paid on the August invoice, two excavator days after the off-hire, handling at 15% against a contract cap of 8%, overtime without a signed sheet and a night uplift without a written instruction.

Will contractors be paid late?

No. Only the disputed amount is held. The undisputed lines are released to accounts payable the day the invoice is decided and paid on the contract's terms, and the contractor gets a notice that shows the measurement, the clause and the evidence for every line held.

Do people stay in control of what is paid?

Yes. The agents propose and never change the contractor's invoice, a timesheet or a hire record. The contract administrator decides every line, a person sends every notice, larger invoices need a countersignature, and paying a line as billed over $5,000 needs a reason and a second approver.

How long does it take to go live?

The Agentic Solution Engine builds and deploys it from your requirements and documents — your framework contracts and schedules of rates, your evidence rules and a sample of past invoices with their field records — and it goes live once every quality gate has passed. We will walk you through it on your own invoices first.

See it on
your contractor invoices.

We'll run Contractor Invoice Validation on a sample of your own paid contractor invoices and their field records.