Requisition Definition - What Does Requisition Mean in Construction?
A requisition is a bill, monthly, bi weekly, weekly or even singularly, issued to invoice a customer, contractor, sub, etc.
Requisition is another term for billing, invoicing, etc. The requisition is normally a reoccurring , monthly invoice and consists of a schedule of values, identifying the individual activities required to complete the project. The normal requisition will list the amount of the line item which is included in the contract, the work completed to date, the previous billing of that line item and then the billing required, pertaining to this requisition. In addition, many requisitions require an accounting of the materials stored to date on site, as well as the amount of money remaining to be billed for each line item.
In many instances the use of the AIA requisition format is required. The AIA format is the American Institute of Architects, which publishes formats for various aspects of paperwork on a construction project. The AIA format of requisitions has a cover sheet which summarizes the billing as well as continuations sheets, which list the line items of the project. The management and accounting control of the requisition procedure is an important aspect of project management on a construction project. The coordinating of the general requisition with the requisitions of the various subs and suppliers is inherent to the project cash flow and financial success of the project.
It is important that the cash flow remain positive on the project for all entities concerned, from the general contractor to the subcontractors and suppliers. Proper management of the requisitions for a project is one of the most important aspects of a successful project.