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ON A COST REIMBURSABLE CONTRACT, WHAT IS THE ACCEPTABLE INVOICE REJECTED PERCENTAGE IN THE INDUSTRY?

MissouriConstruction Contract

I have an academic discussion about acceptable rejection rate. Im looking for best invoicing practices that can assure transparency (for the owner) and fairness (for the contractor) What is an acceptable rejection rate 5 -10 %? Please provide support for your answer. RR

1 reply

Jun 5, 2019

That's an interesting question, and I appreciate the thoughtfulness put into it - for a healthy and successful project, it's important to promote a transparent project founded on fair invoicing practices. Unfortunately, I don't have a clear answer for you. Rejection rates can vary widely depending on the nature of the project and the expectations of the owner, and I'm not sure that there's one blanket range that a rejection rate should fall into. Further, it's worth mentioning that focusing too much on a specific rate could compromise both the integrity of the project and the relationship with the builder. But, as far as an industry standard goes, I'm unaware of a specific target that owners and builders aspire to.

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