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Procore (en-GB)

Create a Subcontractor Payment Application for the Release of Retention

Objective

To create a subcontractor payment application 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 an payment application in the Commitments tool: 

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

 Important
When creating an 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 subcontractor payment application before or after the billing period's 'Due Date' has passed, 'Admin' level permissions on the project's Commitments tool. 
      OR
    • To create a subcontractor before the billing period's 'Due Date' has passed, 'Standard' level permissions on the project's Commitments tool and you must be added as a member of the 'Private' drop-down list in the purchase order or subcontract. This also lists your user name as an 'Payment Application Contact' on the purchase order or subcontract. 
      AND
    • To release retention on a subcontractor payment application, 'Standard' level permissions or higher on the project's Commitments tool.
       Notes
      To learn more about setting and releasing retention on a subcontractor payment application, see Set or Release Retention on a Subcontractor Payment Application.

Prerequisites

Steps

Step 1: Create a 'Draft' Payment Application

  1. Navigate to the project's Commitments tool. 
  2. Under the Contracts tab, locate the purchase order or subcontract. Then click View.
  3. Click Create Payment Application
  4. Enter the following information:
    1. Payment Application #. Enter the payment application number for the payment application.
    2. Payment Application Start. Shows the start of the billing period.  Billing periods are set up in Procore by the contracting party.
    3. Payment Application End. Shows the 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.

  5. Click Save as Draft.

Step 2: Update the Retention Amounts Released this Period

 Important
Remember that when creating an 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 an 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 the subcontractor payment application.
  2. Click Edit.
  3. Under the Retention - Released This Period column, 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

     
  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. In the payment application, click the Detail tab. 

    payment application-detail.png
     
  2. Click Export and choose the PDF option from the drop-down list. 
  3. Provide your signed subcontractor payment application to the contracting party as per your contract terms.  
  4. 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.
  5. 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.

 

If you would like to learn more about Procore’s commitments software and how it can help your business, please visit our construction financials tool product page here.