Contracting & construction
Stage-based invoices, part-payments and a clear payment status for long-running contracts.
A contractor works on long contracts that are billed in stages and paid in parts. Fatooraz helps you issue one invoice per stage with the right amount and VAT, record part-payments, raise credit and debit notes for variations, and see the payment status of each invoice and what each client still owes.
Problems we see in this industry
Progress billing tied to milestones
Work is billed in stages tied to signed-off progress. Preparing each stage invoice from an old template invites errors in amounts, VAT and references, and delays the payment that depends on it.
Retention held back and then forgotten
Clients commonly withhold a share of each payment until completion. If the held amount sits in a note rather than on the books, releasing it later means chasing a balance nobody is tracking.
Many invoices to clients that pay slowly
Large clients approve in stages and pay in parts. The contractor then carries balances across several invoices and needs a clear view of each invoice’s status, showing what is paid and what is still outstanding.
Variations and disputes that touch earlier invoices
Additional scope, deductions and corrections arrive after an invoice is out. Because an issued invoice cannot be edited, each change needs a credit or debit note that references the original.
How Fatooraz helps
Milestone invoices and variation notes
Create an invoice for each milestone with the agreed amount, 15% VAT and a clear description, and invoice the retained amount separately on release. Variations use credit and debit notes linked to the original.
InvoicingPayment terms, part-payments and invoice status
Set payment terms for each invoice, record part-payments as they land and follow the status of every invoice. The open-invoices list, filtered by client, then shows the stages still unpaid or partly paid in one place.
Billing and paymentsCleared standard invoices for companies and government
Invoices to companies and government entities are standard tax invoices, cleared through the Fatoora platform before they reach the client. Fatooraz is built for these rules and guides your onboarding.
ZATCA e-invoicing (Fatoora)Bilingual invoices that match the contract language
Invoices and reports come out in Arabic or in Arabic and English together, matching the contract language whether the client is a local body or an international partner, on a right-to-left interface.
Arabic-first and bilingualE-invoicing for this industry
Contractors mostly issue standard tax invoices, because clients are companies or government entities, and under Phase 2 each one is cleared through ZATCA before it is sent. Small jobs for private individuals may use simplified invoices. Variations, deductions and corrections are credit or debit notes. ZATCA notifies each wave in advance, so plan your onboarding early.
Numbers owners keep an eye on
- Amount billed versus amount collected
- Outstanding balance by client
- Retention amounts awaiting release
- Average days from invoice to payment
Frequently asked questions
How do I invoice a contract in stages?
Create one invoice per milestone for the agreed amount plus 15% VAT, with a description that ties it to the contract stage. Record payments as they arrive, partial or full, and each invoice shows whether it is unpaid, partly paid or paid, which keeps every claim easy to review.
How is retention handled on invoices?
Follow your contract: either invoice each stage in full and track the retained amount as an open balance, or invoice the retained amount when it is released. Confirm VAT timing with your accountant, since it depends on the contract terms.
Do I need a standard tax invoice for a government client?
Yes. Invoices to government entities are standard tax invoices, and under Phase 2 they are cleared through ZATCA before you issue them to the client. Check ZATCA announcements to see when your wave starts, and begin onboarding early.
Start with a workspace of your own
Try invoicing, e-invoicing and the point of sale for 90 days. No credit card, no commitment.