Skip to main content
Procore

Create a New Subcontractor Payment application as a Payment Application Contact

  1. Last updated
  2. Save as PDF
 For Procore Customers in the United States

flag-us.png  When your company applies the 'Owners English' or 'Speciality Contractors English' point-of-view dictionary, you'll see different tool names and term changes in the user interface. Learn how to apply the dictionary options. 

  • To learn the differences: Show/Hide      

    • This table shows the differences in tool names (bold) and terms across the point-of-view dictionaries for Project Financials. These dictionaries are available in US English only. The default dictionary is designed for main contractors, which means that you will need to work with your Procore Administrator at your company and your Procore point of contact to access the other dictionary options. 

      Main Contractors

      English (United States) - Default

      Owners

      English (Owner Terminology V2)

      Speciality Contractors

      English (Speciality Contractor Terminology)
      Payment Applications Payment Applications Progress Billings
      Owner Funding Owner
      Owner/Client Owner/Client MC/Client
      Main Contract Variation Funding Variation Client Contract Variation
      Main Contracts Funding Client Contracts
      Revenue Funding Revenue
      Subcontract Contract Subcontract
      Subcontractor Contractor Subcontractor
      Subcontractor Bill of Quantities (SBOQ) Contractor Bill of Quantities (CBOQ) Subcontractor Bill of Quantities (SBOQ)

Objective

To create a new subcontractor payment application as an payment application contact on a commitment using the Commitments tool. 

Background

As an payment application contact, you may receive an 'Invite to Bill' to remind you to submit a payment application. The subject line of the email message reads "Project Name: User Name has invited you to bill." If your 'Invite to Bill' is lost or missing (or if you are unsure whether a payment application administrator sent one), payment application contacts can always create a new payment application for a commitment.

 Important
  • As a payment application contact, always confirm the appropriate steps to use with the party that contracted your services before submitting your payment application in Procore. 
  • Payment application administrators do NOT always choose to add payment application contacts on a project's commitments. Some payment application administrators prefer to gather digital or paper payment applications (outside of Procore). Once collected, they create payment applications in Procore on the contact's behalf. See Create a Subcontractor Payment application on Behalf of a Payment Application Contact.

Things to Consider

  • Required User Permissions:
  • Additional Information:
    • You must submit your payment application before the 'Due Date' on the payment application. 

Steps

Step 1: Create a New Payment application in Procore

  1. Navigate to the project's Commitments tool. 
  2. Under the Contracts tab, locate the contract in the table. Then, click the Number link to open it.  


     
  3. Click the Create Payment application button. 
    This opens the 'Create New Payment application' page. 

Step 2: Enter a Payment Application Number

  1. In the 'New Payment application for' page under 'General Information,' do the following:
    • Enter the downstream collaborator's payment application number in the Payment application # box.
       Note

      Important things to note about the Payment application # field:

      • An Payment application # is NOT required to save a payment application. You can leave this field blank.
      • An Payment application # is a free-form entry field that lets payment application contacts enter a reference number that corresponds with their own payment application numbering system.
      • A duplicate Payment application # on a commitment is NOT permitted. On one commitment, every payment application must have a unique Payment application #. 
      • An Payment application # does NOT automatically populate on main contract payment applications. See How does Procore automatically complete amounts on an upstream payment application?
    • Verify the information in the following fields. Procore automatically completes the following dates for you.
       Note

      The billing period dates on a payment application are set by the payment application administrator. These fields are required.

      • Billing Date
        Indicates the due date for the billing period. 
      • Period Start
        Indicates the start date for the billing period. 
      • Period End
        Indicates the end date for the billing period. 
  2. Continue with the next step. 

Step 3: Update the Bill of Quantities

  1. In the Bill of Quantities section, click one (1) or both of the BLUE arrows next to 'Commitment Line Items' or 'Variations'. This expands the selected row in the table.
     Notes
    • The 'Variations' section is only visible and available when the company's Procore Administrator has enabled the two (2) or three (3) tier variation configuration on the commitment. See Configure the Number of Commitment Variation Tiers.
    • After expanding a line in the 'Variations' section, click the commitment variation line(s) and potential variation line(s) in order to expand them until you reach the data entry line items. 
  2. Determine which accounting method was set for the contract. This determines which data entry form you use to update the Bill of Quantities:

Amount Based Accounting Method

Use this method to payment application lump-sum amounts for the payment application line items on the Bill of Quantities (BOQ). Procore automatically calculates and adjusts the other entries on the line item for you. If you want to release retention, enter a monetary amount as needed. Depending on your specific commitment, you may also have the option to bill for stored materials. See About Stored Materials on Payment applications.

Click here for more detailed information about the Amount Based accounting method.  

The amount-based accounting method requires data entry of lump sum amounts for each line item on the Bill of Quantities. Note that Procore uses your entries to automatically calculate and update values in other columns. 

  1. Review each line item on the Bill of Quantities: 
    • Item Number. Shows the line item number. 
    • Budget Code. Shows the budget code assigned to the line item.
    • Description of Work. Shows the description for the line item. 
    • Bill of Quantities. Shows the bill of quantities for the line item on the commitment contract. This is the line item's contract value. 
    • Work Completed from Previous Application (%). If previous payment applications were created for this commitment, this cell shows a percentage value that represents the work completed during previous billing periods. 
  2. Enter your bill for work completed during the current billing period: 
    • Work Completed this Period. Enter an amount for the current billing period.
      Example
      If you completed half of the work for the line item, enter the amount in the Work Completed This Period column. For example, enter £250.00. Procore automatically calculates and updates these columns for the line item:
      • Total Completed & Stored to Date (£). If the line item has a bill of quantities of £500.00, Procore adds £250.00, which is 50%. This represents the amount of the total work for the line item on this payment application plus any amount(s) from past billing periods. 
      • Total Completed & Stored to Date (%). If the line item has a bill of quantities of £500.00, Procore changes the column value to 50%, which corresponds to your entry of £250.00. This represents the amount of the total work for the line item on this payment application plus any amount(s) from past billing periods. 
  3. If you received materials this billing period and are storing them on the job site (or in a storage facility), you have this option:
    • Conditional: New Materials Stored. Enter the amount of any new materials being stored for the current billing period. Your entry should exclude any costs entered in the 'Work Completed this Period' column. 
       Note
      If the payment application administrator turned ON the 'Enable Billing Separately for Stored Materials' setting for the commitment, enter a monetary amount for materials for this billing period. Your entry automatically calculates the values in these columns: 'Total Completed & Stored to Date (£) %' and 'Total Completed & Stored to Date (%).'
    • Previous Materials Stored. If this is the first payment application, this value is £0.00.
       Note
      If there are previous payment applications, this value shows the cumulative amounts entered in 'New Materials Stored' on those payment applications. A payment application contact cannot modify this setting.
    • Materials Presently Stored. Shows the amount of the materials being stored during the current billing period. 
    • Total Completed & Stored to Date (£). Shows the amount of the work completed and materials stored on the job site for the current payment application and on payment application(s) for past billing period(s).  
  4. If you are submitting a payment application requesting to release a retention amount: 
    • Total Retention Released. Enter the amount of retention that you are requesting to be released this billing period.
       Note
      Note that you can request the amount to be released, but you are not permitted to change the retention rate. 
    • Total Retention. Shows the cumulative amount of retention released for the line item. 
  5. Continue the steps above for each line item. 

Unit-Based Accounting Method

Use this method when payment applications for materials you've ordered in quantity. With this method, you either enter a percentage value 'Total Progress' column or a monetary value in the 'Work Progress' column. Procore automatically calculates and adjusts the other entries on the line item for you. If you want to release retention, you can enter a monetary amount in the 'Retention Released' column needed. Depending on your specific commitment, you may also have the option to bill for stored materials. See About Stored Materials on Payment applications.

Click here for more detailed information about the Unit-Based accounting method.  

The Unit-Based accounting method requires you to enter a quantity and unit price for each line item on the BOQ. With this method, Procore automatically calculates line item totals for you. 

 Note
An asterisk (*) in the list below indicates that you can edit the value of the BOQ line item on your payment application. 
  • Quantity
    Shows the total number of units for the line item. 
  • Unit Price
    Shows the expense incurred for each unit for the line item. 
  • Value
    Shows the total monetary amount of the line item. This is the sum of the Unit Price + Quantity values. 
  • Previous Quantity
    Shows the total number of units issued in previous billing periods. 
  • Previous Value
    Shows the total monetary amount issued in previous billing periods.
  • Total Progress %.*
    Enter a percentage amount that reflects your total progress. Your entry must reflect the cumulative progress of any previous billing periods and the current billing period. 
  • New Quantity.*
    Enter a new quantity to reflect the quantity being billed this period on the new payment application. 
     Note

    A icon-calculator.png calculator icon indicates that Procore automatically calculates the line item's Amount based on the entries in the Qty, UoM and Unit Cost fields. Click here to see an example.

  • New Value.*
    Enter a new value to reflect the value of the line item being billed this period on the new payment application. 
     Note

    A icon-warning-estimating.png warning icon indicates a user's Amount entry overrides the automatic calculation with a custom amount. Click here to see an example.

  • Retention Released.*
    Enter a monetary amount of retention to be released this billing period. 
  • Total Retention
    Shows the total monetary amount of retention to be released for the line item. 

 

Step 4: Add Attachments

If you have any files to add as an attachment to the payment application, you can add them now. For example, you might be required to add a lien waiver or a signed PDF copy of the payment application. 

  1. Scroll to the Attachments section.
  2. Click Attach Files or use a drag-and-drop operation to move the files from your computer or network to the GREY area of the page. 
    attachments-attach-files.png
  3. Upload any files that may be required from your computer.
     Notes
    • Collaborators and users with 'Standard' level permissions on the project's Commitments tool can use the Attach Files option after a payment application is 'Approved'.
  4. Continue with the next step.

Step 5: Save as Draft or Send for Review

If you are ready to submit the payment application for review, you may do so now. If you want to submit the payment application at a later time, you have the option to save the payment application. Choose one (1) of these options:
save-as-draft-or-send-buttons.png

  • If you are NOT ready to send the payment application, click Save as Draft. This sets the payment application's status to Draft. 
     Tip
    If you want to email a copy of your payment application to others before submitting it for review, Procore recommends following the steps in Export a Subcontractor Payment application. You can then add your payment application as an attachment to a message using your company's email system. 
    OR
  • If you are ready to send the payment application, click Send. This automatically sets the payment application's status to Under Review.
     Important