Government contracts have rules. Silent violations are expensive.
H166547 imposes over a dozen enforceable billing requirements. Without automated review, even a careful team misses things — and the City doesn't send warnings before withholding payment.
📋
Manual review bottleneck
AP staff spend 45–90 minutes per invoice cross-checking contract terms. Volume grows, headcount doesn't.
~$2,100 / month in staff time
⏱
14-day payment window violations
§4.4.1.2 requires subcontractor payment within 14 working days of City payment. One late cycle triggers audit exposure.
Potential payment withholding
🔎
Contextual rules need judgment
§11.8.1.1 prohibits internal meeting expenses. These hide in line-item descriptions — "Strategy Lunch," "Team Planning Day" — no rule engine catches them without reading the text.
Audit risk per invoice
📬
No audit trail by default
When the City disputes a payment, a clear record of what was checked and when — with contract section citations — is the difference between resolution and escalation.
Legal + admin exposure
2 How It Works
Seven steps. Fully automated. Under 60 seconds.
From invoice submission to a complete audit report with cited contract violations — no human required unless the engine flags it.
01 · INTAKE
📥
Receive Invoice
Webhook accepts payload. Invoice ID, vendor, total, dates, and PDF data ingested. Required fields validated before processing begins.
02 · EXTRACT
🔍
Parse & Normalize
ContractIQ extracts all fields from PDF. Data normalized and merged with submitted payload. Extraction status logged.
03 · HARD RULES
⚖️
Deterministic Audit
Six mathematical H166547 checks run in sequence — payment windows, insurance markup, PRISM deadlines, prevailing wage thresholds, and more.
04 · ContractIQ
🤖
Contextual Reasoning
ContractIQ reads line items and descriptions, flags internal meeting expenses, evaluates withholding justification quality, and assesses documentation completeness.
05 · CLASSIFY
🚦
Compliance Ruling
Hard rule and ContractIQ findings merged. Final status computed: GREEN (auto-approve), YELLOW (human review), or RED (reject).
06 · NOTIFY
📧
HTML Audit Report
For flagged invoices: a professional HTML audit report emailed with all findings, cited section numbers, evidence, and recommended action.
07 · RESPOND
✅
Structured Return
Complete audit report returned via webhook response — plugs into any downstream system: HubSpot, Airtable, your accounting platform.
3 Compliance Rules
Six hard rules. One ContractIQ reasoning layer. Every invoice.
The engine encodes H166547's enforceable billing requirements as deterministic code, then layers ContractIQ contextual judgment on top — catching what math alone misses.
Hard Rules — Deterministic Checks
R001
14-Day Subcontractor Payment Window
§4.4.1.2 · Working days calculated
Red
R002
Zero Markup on Insurance Reimbursement
§4.3.5 · Dollar-precise comparison
Red
R003
Withholding Justification Documentation
§4.4.1.3 · 4-part form required
Yellow
R004
PRISM Monthly Reporting by the 5th
§4.5.3 · Date-aware check
Yellow
R005
Prevailing Wage Certification
§4.20 · $25K construction / $15K repair
Red
R006
Competitive Bidding Documentation
§1.6 · Required bid docs attached
Yellow
ContractIQ Reasoning Layer
What math can't catch, ContractIQ reads.
After deterministic checks, ContractIQ reviews every line item description for contextual compliance issues. No rule can flag "Internal Strategy Lunch" — but ContractIQ reading the expense description can.
Internal meeting & subsistence expenses (§11.8.1.1) — reads expense text
Withholding justification quality — assesses 4-part standard completeness
Ambiguous expense categories — flags items requiring human judgment
The H166547 audit you just watched is the pattern. Point the same engine — same deterministic checks, same ContractIQ reasoning, same audit trail — at the rest of NANO's work. Some are ready to run this month; some are scoped for the next; one you named yourself.
01✓ Live · Running
Client Contract Compliance
The engine you just ran. Every client-side contract — City of San Diego, LSU, CoJC, MCCNO — gets its own rulebook. Invoices audited before payment clears, every clause cited, every ruling logged.
Ready to point at your first LSU contract in one working session.
02▶ Next · 2 weeks
Construction Administration
Same engine, pointed at contractor pay applications. Pre-flight every pay app against the project's contract before it reaches your architect. Out-of-scope caulking, non-scope water, non-scope nails — flagged with the clause number.
Cuts your team's 4-hour manual pre-review to minutes.
03▶ Next · 2–3 weeks
Accounting — Expense & CC Review
A pre-flight on NANO's own outbound invoices and expense charges. Nothing billable slips through; nothing out-of-scope ships to a client. Your accounting review becomes verification, not detection.
Pattern proven on City of San Diego reimbursables — same logic, your books.
04▶ Next · 3 weeks
AIA 2030 Materials Tracker
Percent low-carbon materials tracked per project — LSU, CoJC, MCCNO, plus one more of your choice. The 2030 commitment stops being a spreadsheet chore and becomes a live dashboard against the four target projects.
Reports auto-generated for AIA year-end submission.
05✎ Her idea · Scoped
Meeting Minutes ↔ Drawings
Flags decisions in meeting minutes that don't appear in the drawing set — and drawing changes with no corresponding minute. The audit trail between what you said and what you drew, on the same searchable ledger as every other workflow.
You named this on the 16th. We scoped it Friday.
06⚡ Live · For your GC partners
BigEye — Public Bid Intelligence
Contractors upload a public bid package — BigEye reads every clause and returns hidden risks, compliance items, and dollar-impact flags in minutes. NANO's GC partners bid smarter; NANO gets a seat at the table earlier. Roofing pilot live, other trades on deck.
$50K+ avg. hidden exposure surfaced per bid · Kenner Pontchartrain Center pilot live
Every violation cited. Every section referenced. Emailed automatically.
When an invoice is flagged RED or YELLOW, a professional audit report is emailed instantly — with every finding cross-referenced to the exact H166547 contract section.
11 days past the 5th deadline — payment may be withheld
🟡 YELLOW
Withholding Docs
§4.4.1.3
Payment withheld — 4-part justification missing
ContractIQ · Compliance Assessment
This invoice contains three critical violations requiring immediate rejection under H166547. The §4.3.5 insurance markup of $50 is mathematically prohibited. The internal strategy lunch billed under §11.8.1.1 was identified by AI review of expense descriptions — this is non-reimbursable regardless of amount. Recommend vendor resubmit with corrected insurance line and documented evidence of client-facing nature of all subsistence expenses.
Every run. Forever queryable.
Every workflow run — invoice, pay app, expense, materials, minutes — writes one row here. Search plain English. Ask the AI questions of history. No more 700-email threads to reconstruct what happened in March.
nano.pillar.audit-ledger · 6 recent runs
Which March pay apps flagged out-of-scope caulking charges on LSU?
AI Q&A on the ledger — every answer cites the exact rows below.
Date
Project
Workflow
Doc
Ruling
Approver
Jul 14 · 2:41 PM
LSU-2026-A
Invoice Audit
Pay App #7
Approved
S. Kramer
Jul 12 · 10:18 AM
CoJC-Phase2
CA Contract Check
Pay App #12
Review
T. Dreyer
Jul 10 · 4:03 PM
MCCNO-Renovation
Materials Tracker
Monthly Rollup
Approved
Auto
Jul 9 · 9:22 AM
LSU-2026-A
Invoice Audit
Sub Invoice #33
Rejected
S. Kramer
Jul 8 · 3:15 PM
CoJC-Phase2
Minutes ↔ Drawings
07/07 Owner Mtg
Review
T. Dreyer
Jul 7 · 11:44 AM
LSU-2026-A
Expense Review
CC Statement — Jun
Approved
Auto
6 Impact
From hours to seconds. From exposure to evidence.
The engine replaces manual review for every invoice cycle — and adds a documented audit trail that didn't exist before.
<60s
Audit Time Per Invoice
Down from 45–90 minutes of manual review per submission
6
Hard Rules Automated
All enforceable H166547 billing requirements encoded and checked deterministically
100%
Coverage
Every invoice audited — no sampling, no backlogs, no exceptions
∞
Audit Trail
Every ruling documented with contract section citations — defensible record from day one
The workflow is built, tested, and live. Going live requires one credential and one endpoint change.
Set the API Key
In n8n Settings → Variables, add your key. The engine uses ContractIQ for PDF extraction and ContractIQ compliance reasoning.
ANTHROPIC_API_KEY = sk-ant-…
Connect Your AP System
Point your invoicing tool or script to the webhook endpoint. Any system that can POST will work — QuickBooks, Airtable, manual submission.
POST /webhook/invoice-audit
Set Teams Alert Channel
Add TEAMS_WEBHOOK_URL and TEAMS_CHANNEL variables. Critical failures post directly to your NANO channel in Microsoft Teams.
TEAMS_CHANNEL = NANO · Workflow Alerts
Expand to More Contracts
H166547 is the first ruleset. Additional City of San Diego contracts, or any government billing standard, can be encoded as a new rule base and loaded dynamically.