Ridgeline Electric, Inc.: Accounting Department Reference Sheet
Standing facts for drafting replies to vendors, subcontractors, general contractors, customers, and employees
FICTIONAL SAMPLE POLICIES. Ridgeline Electric, every person, company, job, date, and dollar amount on this sheet is invented for the ImpactMe.AI workshop on October 27, 2026. These are not recommended policies, legal advice, or tax advice. Use this sheet as a model for building your own, with your firm's real policies, in an AI account your firm has approved.
Version: October 2026 (covers the October 2026 close and the Thanksgiving payroll week) Owner of this sheet: Laura Bennett, Controller. Send corrections to her, not to the AI.
1. Who we are
- Ridgeline Electric, Inc., a union electrical contractor, about 140 employees. Commercial, institutional, and public works.
- Office: 2750 N Larkspur Industrial Way, Spokane Valley, WA 99212. Main line (509) 555-0140.
- Office hours: Monday to Friday, 7:00 am to 4:30 pm Pacific.
- Mailboxes: ap@ridgeline-electric.example (invoices and vendor questions), billing@ridgeline-electric.example (our invoices and pay apps to customers), payroll@ridgeline-electric.example (employees).
Open jobs people ask about most:
| Job | Name | General contractor | Notes |
|---|---|---|---|
| 1042 | Riverside Medical Office Building | Summit Builders | |
| 1047 | Maple Street Elementary Modernization | Kestrel Construction Group | Public works (prevailing wage) |
| 1051 | Northpoint Distribution Center | Ironwood General Contractors | |
| 1055 | Hillcrest Apartments Phase 2 | Prairie Hawk Builders | |
| 1060 | Larkspur County Water Treatment Upgrade | Granite Peak Contractors | Public works (prevailing wage). 5% retainage |
| 1063 | Valley Fire Station 9 | Northgate Construction | Public works (prevailing wage) |
| 1066 | Downtown Parking Garage LED Retrofit | Summit Builders |
2. Paying our vendors and suppliers (Accounts Payable)
- Payment terms: Net 30 from the invoice date, unless a signed agreement says otherwise.
- Pay runs: One AP run every Thursday. Checks are mailed and ACH payments are sent that afternoon. ACH usually lands in 1 to 2 business days.
- Which run an invoice goes in: the last Thursday run on or before the due date, as long as the invoice was received and approved by the project manager by noon Monday of that week. If it misses Monday noon, it goes in the next Thursday run.
- Early-pay discounts: We take them when offered (for example, 2% 10, net 30) and pay in the run that meets the discount date.
- Invoice must show: our job number, our PO number (if one was issued), and the ship-to or job site address. Invoices without a job or PO number are returned, not paid.
- Payment method: ACH is preferred. Checks are available on request.
- Thanksgiving week: The Thursday run moves to Wednesday, November 25, 2026. Approval deadline is still Monday, November 23 at noon.
3. Paying our subcontractors
- Pay-when-paid. Subcontractors are paid after Ridgeline receives the general contractor's payment for that work. We pay in the first Thursday run after we receive the GC's payment, and never more than 7 calendar days after we receive it.
- We hold retainage on every subcontractor payment (see section 5).
- Before any subcontractor payment is released, we must have on file:
- A conditional lien waiver for this payment
- An unconditional lien waiver for the previous payment (after the first payment)
- A current certificate of insurance (COI)
- Certified payroll for the period, on public works jobs (1047, 1060, 1063)
- Missing paperwork means the payment waits for the next Thursday run after we receive it. We do not release partial payments for missing paperwork.
- We cannot see a GC's payment status for a sub. Payment status questions go to AP (Kyle Marsh), who checks the ledger.
4. Pay applications (progress billing)
Subcontractors billing Ridgeline
- Cutoff: Subcontractor pay apps are due to ap@ridgeline-electric.example by the 20th of each month, for work through the end of that month (projected).
- If the 20th falls on a weekend or holiday, they're due the prior business day. (November 20, 2026 is a Friday. December 20, 2026 is a Sunday, so December's are due Friday, December 18.)
- Late pay apps roll to the next month's billing cycle. We can't add them to a GC pay app that has already been submitted.
- Every sub pay app must include:
- AIA G702/G703 or our pay app form, with the schedule of values
- Conditional lien waiver for this pay app
- Unconditional lien waiver for the last payment received
- Certified payroll for the period (public works jobs only)
- An updated COI, if the one on file has expired or will expire this month
Ridgeline billing our general contractors
- We submit our pay apps to GCs by the 25th of each month, unless the GC's contract requires an earlier date.
- Summit Builders (jobs 1042 and 1066): contract requires the 20th. October 2026 pay apps go to Summit by Tuesday, October 20. November 2026 pay apps go by Friday, November 20.
- Our pay apps include: AIA G702/G703 with schedule of values, our conditional lien waiver, our unconditional lien waiver for the last payment received, certified payroll (public works), and our current COI if the GC requires it with each billing.
- Billing questions from GCs go to Priya Shah, AR and Billing Lead.
5. Retainage
- What we hold from subs: 10% of each payment. 5% on Job 1060 (Larkspur County Water Treatment), to match the owner's contract.
- When we release it: within 10 business days after ALL of these are true:
- Ridgeline has received our own retainage release from the GC for that job
- The sub's work is complete and accepted, with the punch list closed
- Closeout documents are delivered (O&M manuals, warranties, as-builts, as required by the subcontract)
- We have the sub's final conditional lien waiver, plus unconditional waivers from the sub's suppliers if we ask for them
- Early or partial retainage release is an exception. It needs written approval from both the Controller (Laura Bennett) and the job's project manager. Staff and AI drafts never promise or suggest an early release.
6. Lien waivers
- Conditional waiver: waives lien rights only once the payment actually clears. Required with each pay app or invoice from subs, and from suppliers on jobs where the GC requires it.
- Unconditional waiver: confirms payment was received. Required for the previous payment before we release the next one.
- Final waivers: final conditional with the retainage billing; final unconditional after retainage is paid.
- Forms: our standard forms, or the GC's required forms when the GC's contract says so. Any change to waiver wording needs the Controller's approval.
- Our waivers to GCs: prepared by Priya Shah with each pay app.
7. Documents vendors and subs must provide
Before the first payment (all new vendors and subs):
| Document | Who | Notes |
|---|---|---|
| W-9 (signed, current year form) | Everyone | Legal name and tax ID must match the invoice. No payment is issued until we have it. |
| Certificate of insurance (COI) | Subs, and vendors who work on or deliver to a job site | General liability $1,000,000 per occurrence / $2,000,000 aggregate; auto $1,000,000; workers comp as required by state law; umbrella $2,000,000 for subs. Ridgeline Electric, Inc. named as additional insured. |
| Washington contractor registration number | Subs | |
| Electrical contractor license number | Electrical subs | |
| Signed subcontract or vendor setup form | Everyone | |
| ACH authorization on company letterhead | Anyone who wants ACH | See bank change rule below |
| Intent to pay prevailing wages | Subs on public works jobs | Must be approved before the sub's first payment on that job |
Changes:
- Name change or new tax ID: new W-9 and an updated vendor setup form. Subs, and vendors who come on site, also need a COI in the new legal name. AP Lead (Kyle Marsh) approves the change.
- Bank account or remit-to changes: never made from an email, even one that looks real. AP calls the vendor at a phone number already on file to confirm, then the Controller approves. Replies to these requests come from a human only.
- Expired COI: payments are held until we receive a current one.
Send documents to: ap@ridgeline-electric.example
8. Our invoices to customers: late fees and finance charges (Accounts Receivable)
- GC progress billings: due per each GC's contract.
- Service and T&M customers: Net 30 from the invoice date.
- Finance charge: 1.5% per month on invoice balances more than 30 days past due, as stated in the terms on every invoice. Minimum charge $10.00.
- When it's charged: on the monthly statement, run the first business day of each month. (November 2026 statements run Monday, November 2.)
- Waivers: only the Controller can waive a finance charge. Staff and AI drafts never promise a waiver.
- Disputes: acknowledge the message, don't argue, send a copy of the invoice and statement if asked, and route the dispute to Priya Shah (AR) and Laura Bennett (Controller).
9. Payroll
- Pay week: Monday to Sunday. Payday: the following Friday, by direct deposit.
- Timesheets: due in the time app by 10:00 am Monday for the week that just ended.
- Corrections: to payroll@ridgeline-electric.example by noon Tuesday to make that Friday's check. Later corrections go on the next regular payday.
- Missed timesheet deadline: those hours are paid on the next regular payday, unless the Payroll Administrator approves an off-cycle check.
- Thanksgiving week 2026: the office is closed Thursday, November 26 and Friday, November 27. Timesheets for the week of November 16 to 22 are still due Monday, November 23 at 10:00 am. Payday moves up to Wednesday, November 25.
- Certified payroll (public works jobs 1047, 1060, 1063): submitted to the GC every Wednesday by 5:00 pm for the prior pay week.
- Union fringe benefit remittance: to the Pine Ridge Electrical Workers Benefit Trust by the 15th of the following month.
- Pay rates, deductions, garnishments, benefits, and anything about one person's pay go to Tom Reyes, Payroll Administrator, not to an AI-drafted reply.
10. Month-end close calendar: October 2026 close
| Date | Deadline |
|---|---|
| Thu, Oct 29 | Last AP run of October |
| Fri, Oct 30, 3:00 pm | Field receipts and company card receipts for October due to AP |
| Mon, Nov 2, 5:00 pm | AP cutoff. October invoices received by then are booked to October. Larger invoices received later (over $2,500) are accrued |
| Mon, Nov 2 | Customer statements run (finance charges assessed) |
| Tue, Nov 3 | Payroll and union fringe accruals booked |
| Wed, Nov 4, noon | Project manager cost-to-complete updates due |
| Fri, Nov 6 | All bank reconciliations complete |
| Tue, Nov 10 | WIP schedule review, Controller and CFO |
| Wed, Nov 11 | Veterans Day. Banks closed, office open. No ACH settles that day |
| Fri, Nov 13 | October financial statements to the owner |
11. Who to escalate to
| Topic | Person | Contact |
|---|---|---|
| Invoice or payment status, vendor setup, W-9, COI, name changes | Kyle Marsh, AP Lead | ap@ridgeline-electric.example, ext. 214 |
| Our pay apps, customer invoices, finance charges, collections | Priya Shah, AR and Billing Lead | billing@ridgeline-electric.example, ext. 216 |
| Timesheets, paychecks, certified payroll | Tom Reyes, Payroll Administrator | payroll@ridgeline-electric.example, ext. 219 |
| Any exception to policy, fee waivers, early retainage, waiver wording | Laura Bennett, Controller | ext. 210 |
| Legal threats, lien threats, stop-work threats, attorney letters, disputes over $10,000 | Greg Halvorsen, CFO | ext. 201 |
| Scope, schedule, or "is the work done?" questions | The job's project manager: Dan Whitfield (1042, 1066), Ben Larsen (1047, 1055), Carla Nguyen (1051), Erin Calloway (1060, 1063) | via the main line |
| Tax questions (sales tax, exemptions, 1099s) | Laura Bennett, Controller | ext. 210 |
12. What this sheet does NOT cover (so the AI must not answer it)
Sales tax and exemption questions. The status of any specific invoice, payment, or check. Pay rates and individual paychecks. Contract terms for a specific subcontract. Anything legal. When an email asks about these, the draft says who will follow up, and flags it.