Invoicing Do & Charge and Lump Sum Work on the Same Job

Overview

Many Jobs contain a combination of Lump Sum and Do & Charge items.

For example, a project may include a fixed-price installation together with labour, materials and additional expenses that are charged as work progresses.

JGID allows you to invoice these different types of work independently, making it easy to issue progress invoices for Do & Charge work while leaving Lump Sum items until the agreed stage of completion.

This approach provides accurate billing while maintaining a complete audit trail.

Understanding the Difference

Lump Sum

Lump Sum items (also known as fixed-price items) are invoiced based on the agreed contract value.

They are typically invoiced:

When a milestone is reached.
As a percentage of completion.
When the work has been completed.

The invoice amount is based on the quoted price rather than the hours worked or materials used.

Do & Charge

Do & Charge items are invoiced based on the actual work performed.

Examples include:

Labour hours.
Materials used.
Equipment hire.
Travel.
Additional expenses.

These items are commonly invoiced on a regular schedule while the project is underway.

A Typical Scenario

A Job may contain:

A fixed-price installation.
Hourly labour charged as required.
Materials charged per unit.
Additional reimbursable expenses.

In this situation, the labour, materials and expenses can be invoiced regularly while the Lump Sum portion remains untouched until the appropriate stage of the project.

Progress Billing

Many businesses choose to invoice Do & Charge work regularly to maintain cash flow.

For example:

After the first week.
Every two weeks.
Monthly.
At any other agreed interval.

JGID supports whichever billing cycle best suits your business and your customer's requirements.

Benefits

Separating Do & Charge work from Lump Sum work allows you to:

Invoice completed work sooner.
Improve cash flow.
Accurately recover labour and material costs.
Leave fixed-price work until contractual milestones are reached.
Maintain a clear audit trail for all invoicing.

Video Tutorial

The video below demonstrates how to invoice a Job that contains both Lump Sum and Do & Charge items, including:

A fixed-price component.
Hourly labour.
Materials charged per unit.
Additional expenses.
Weekly or recurring progress invoicing.

Best Practice

Use Lump Sum items for work agreed at a fixed price.
Use Do & Charge items for labour, materials and expenses that vary during the project.
Invoice Do & Charge work regularly to maintain healthy cash flow.
Leave Lump Sum items until the agreed milestone or completion stage.
Agree the billing frequency with your customer before work commences.

Understanding Quotes
Understanding Jobs
Understanding Invoices
Understanding Worksheets and Timesheets
Understanding Daily Labour Summaries (DLS)