Stored materials are materials the contractor has bought and received but not yet installed. On the G703 they appear in the “materials presently stored” column. Many contracts allow billing for them, especially for expensive or long-lead items, but with conditions: proof of purchase, proper storage, insurance, title passing to the owner, and for off-site storage, often a bonded warehouse and the owner’s approval in advance.
Why it matters
Contractors often have to pay suppliers before installation. Billing stored materials keeps that cash gap from landing on the GC or sub. But stored materials are also a risk: they can be damaged, stolen or double counted. Once installed, the value must move from “stored” into “work completed,” or it gets billed twice.
Worked example
Illustrative: on Riverside Medical Center, the fire dampers for CO #14 arrive before installation. Their invoiced cost of $17,280 is billed as stored materials on Pay App #9, with the supplier invoice and a photo in the backup. Next month, once installed, the $17,280 moves from stored materials into work completed this period, and the stored column for that line goes to zero.
Common mistakes
- Billing off-site stored materials without the owner’s prior approval.
- Not moving value out of “stored” when installed, which double bills.
- Missing insurance or title documentation that lenders require.
How os.construction handles it
We’re building stored materials as tracked items linked to the PO and delivery, so the billing record can move them from stored to installed instead of relying on a spreadsheet.