Create a Payment Programme

Objective

To create a payment programme that contains subcontractor claimed amounts, approved amounts and reasons for the difference between claimed and approved amounts.

Background

In Australia and New Zealand, a payment programme is a legal notice that is served on a claimant in response to a claim for payment. Construction businesses operating in Australia and New Zealand are creating payment programmes to facilitate the payment application approval process, as well as claims of work performed by subcontractors.

In a typical payment programme workflow, subcontractors submit a payment application for work performed. The main contractor will review the payment application and either approve or reject the amounts that the subcontractor is claiming for work performed. When a payment programme is created from the payment application, the amounts claimed, amounts approved and reasons for rejected amounts will be noted on the payment programme form.

Things to Consider

• Required User Permissions:
  • 'Admin' level permissions on the project Commitments tool.
• Requirements:
  • The 'Show Amounts Subcontractors Claim' setting must be enabled in the Payment applications tool. See Configure Settings: Payment applications.
  • For amounts to appear on the payment programme, subcontractors must enter amounts in the 'Work Completed This Period' and 'Materials Presently Stored' columns on the subcontractor payment application. See Submit a Payment Application as a Subcontractor.
• Additional Information:
  • You can configure Procore to automatically notify payment application contacts by email when a subcontractor payment application's status changes to 'Approved'. See Configure Settings: Commitments and What is a payment application contact?
  • You can define custom text which appears in the footer of payment programme PDFs. See Configure Settings: Commitments.

Prerequisites

• The 'Show Amounts Subcontractors Claim' toggle must be turned ON in the configuration settings of the Project level Payment applications or Progress Billings tool. See Configure Settings: Payment applications or Configure Settings: Progress Billings. 
• Complete the steps in Create a Payment Application on Behalf of a Payment Application Contact or Submit a New Payment application as a Payment Application Contact.
• In order for amounts to appear on the payment programme, subcontractors must enter amounts in the 'Work Completed This Period' and 'Materials Presently Stored' columns of the payment application. See Submit a New Payment application as a Payment Application Contact.

Steps

1. Navigate to the project's Commitments tool.
2. Click the Contracts tab.
3. Locate the contract associated with the subcontractor payment application. Then click View.
4. Select the Payment Applications tab.
5. Perform one of the following steps:
   • Click the PDF icon  on the far right side of the most recent line item.
     OR
   • Click View next to the most recent line item and then on the Payment Applications screen, select PDF from the Export drop-down list.

     Example

     The illustrations below show the 'Application and Certificate for Payment.' The first page provides a summary and the second page provides line item detail.  
     
     

See Also

• Configure Settings: Commitments
• Submit a Payment Application as a Subcontractor