What is overbilled in construction?

Overbilling in construction refers to the practice where contractors bill clients for more work than has actually been completed or for costs that exceed the actual expenditures incurred. This can happen due to inaccurate estimates, intentional misrepresentation, or the need for cash flow management. Overbilling can lead to disputes, financial strain on clients, and potential legal ramifications if not addressed. It's essential for both parties to maintain clear communication and accurate documentation to avoid such issues.