What deductions must the Contractor account for in their invoice?

The requirement for the Contractor to account for costs of materials retained is critical in ensuring that all expenses related to the project are transparently communicated in the invoice. This means that if there are materials that the Contractor has purchased but not yet used or has retained for future use, these costs must be noted in the invoice. This practice promotes accountability and helps to justify the total amount being billed.

Transparency in invoicing is essential for maintaining trust in the client-contractor relationship. It allows the client to understand fully what they are paying for, including any materials that may not be immediately associated with completed services. Retaining costs also ensures that the Contractor can accurately represent the financial aspects of their project, which can be crucial for budget tracking and project management.

The other options don’t align with the necessary deductions to be documented in the invoice as they either refer to anticipated profits or specific administrative costs that may not necessarily be relevant to the invoicing of materials retained.