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Procore (en-GB)

Create a Subcontractor Payment Application for the Release of Retention

Objective

To create a subcontractor invoice for the release of retention

Background

The first step in releasing retention on a project is to create a subcontractor invoice. There are two ways to create a payment application in the Commitments tool: 

The steps below summarise how to create and submit a payment application for releasing retention.

 Important
When creating a payment application to release retention, it is important to ensure the payment application is in the 'Draft' status before you enter the retention amounts on the payment application's Detail tab. 

Things to Consider

  • Required User Permissions:
    • To create a payment application (both before and/or after the billing date has passed), 'Admin' permission on the Commitments tool.
      OR
    • To create a payment application (only before the billing date has passed), 'Standard permission on the Commitments tool. 
      AND
      • You must be listed as a member of the Private drop-down menu for the specific commitment. 

Prerequisites

Steps

Step 1: Create a 'Draft' Payment Application

  1. Navigate to the project's Commitments tool. 
  2. Click the Summary or Detailed tab.
  3. Locate the commitment to work with. Then click View.
  4. Click Create Payment Application
  5. Enter the following information:
    1. Payment Application #. Enter the payment application number for the payment application.
    2. Payment Application Start. Shows start of the billing period.  Billing periods are set up in Procore by the contracting party.
    3. Payment Application End. Shows end of the billing period.  Billing periods are set up in Procore by the contracting party.
    4. Billing Date. Shows billing date for the billing period.  Billing periods are set up in Procore by the contracting party.
       Note

      To learn more about billing periods in Procore, see Create Automatic Billing Periods and  Edit a Billing Period For Payment Applications.

  6. Click Save as Draft.

Step 2: Update the Retention Amounts Released this Period

 Important
Remember that when creating a payment application to release retention, it is important to ensure the payment application is in the 'Draft' status before you enter the retention amounts on the payment application's Detail tab. If you are a subcontractor who has been invited to submit a payment application and navigating to that payment application from the invitation,  always check to make sure the payment application is in the 'Draft' status.  
  1. Click the Detail tab in subcontractor payment application.
  2. Click Edit.
  3. Under the Retention - Released This Period columns, do the following:
    • Work Retention. Enter the retention amount that you are requested to have released using the currency format.  
    • Materials Retention. Enter the retention amount being released using the currency format. 
       Tip
      Keep in mind that the values in the Currently Retained columns show the retention amounts being withheld by the contracting party. 
      released-this-period.png
  4. Optional. If the contracting party has enabled the 'Show Amounts Subcontractors Claim' setting in the Commitments tool, you will have the ability to enter amounts for the work being claimed for the billing period in the Subcontractor Claimed This Period column.
     Note
    The 'Show Amounts Subcontractors Claim' setting was designed for Procore clients in Australia and New Zealand. This provides construction businesses with the ability to create payment programmes to facilitate payment application approvals and claims of work performed by contractors. To learn more, see Create a Payment Programme

    subcontractor-field.png
  5. Click Save at the top of the table. 

Step 3: Sign the Payment Application Detail PDF

If the contracting party requires you to sign the payment application that you submit, do the following:

  1. Make sure you are viewing the Detail tab in subcontractor payment application.
  2. Click the Export menu and choose the PDF option. 
  3. Sign the PDF.
  4. Provide your signed subcontractor payment application to the contracting party as per your contract terms.  
  5. Optional. If you would like to include a copy of your signed payment application as an attachment, do this:
    • Click the Summary tab.
    • Click Edit
    • Scroll to the Attachments area and upload a copy of your signed payment application. You may also attach supplemental documentation related to your payment application, such as any lienwaivers.
  6. Click Save to save the payment application as a 'Draft.'

Step 4: Save and Submit the Payment Application

 Caution
  • Before submitting your payment application, it is important to review it for accuracy and completeness. To learn how, see Review Payment Applications as a Subcontractor.
  • Once you submit the payment application, you will NOT be able to make changes without contacting the contracting party to change your payment application's status to Revise & Resubmit

When you are ready to submit your payment application, click Submit for Review. This changes the payment application's status to Under Review.