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Create a Subcontractor Payment application for Release of Retention in the Payment Applications Tool

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Objective

To create a subcontractor payment application for the release of retention as a final payment.

Background

In Procore, the term Retention refers to the practice of withholding of a portion of a contract amount until the work is deemed satisfactorily complete. The withheld amount is specified in an agreement between the contracting party (the party paying for the work) and a contracted party (the person or company performing the work).  A common practice is to withhold 5-10% of a contract's total value until a milestone is reached. Then, the withheld amount can be released as a progress payment. When work is substantially complete, the withheld amount can be released as a final payment. 

Things to Consider

  • Required User Permissions:
    • To set and release retention when editing the most recent payment application before, during or after the billing period's 'Due Date':
    • To release retention when editing the most recent payment application during the current billing period:
      • You must have 'Standard' level permissions on the Project level Commitments tool. 
        AND
      • You must be added to the 'Private' drop-down list on the commitment. 
    • Read about required user permissions for downstream collaborators: Show/Hide  
      • Some Procore customers choose to provide their downstream collaborators with access to the Project level Commitments tool:
        • To modify retention amounts on the most recent payment application before the billing period's 'Due Date':
          • You must be an payment application contact on the commitment.   
            AND
          • You must have 'Read Only' level permissions on the Project level Commitments tool. 
  • Additional Information:
    • If there are multiple payment applications for a single billing period, you can only edit the billed amounts on the most recent payment application.
    • If you are adding a payment programme after the payment application is approved, enter the amount for the work you are claiming this period in the 'Proposed Amount' column of the payment application detail. To learn more, see Create a Payment Programme. 
    • You can also manage withholding using the sliding scale retention feature. To learn more, see What is sliding scale retention?

Steps

  1. Navigate to the project's Payment applications tool. 
  2. Click the Subcontractor tab.
  3. Choose from these options in the Subcontractor tab:
    • To modify an existing payment application, locate the 'Draft' payment application to modify and click its Payment application # link to open it. 
      OR
    • To create a new payment application, locate the correct Contract link to open the contract. Then click Create > Create Payment application. Procore creates a new payment application in the 'Draft' status.
  4. In the General tab of the payment application, scroll to the Bill of Quantities. 
  5. In the Bill of Quantities, locate the line item(s) to modify and scroll to the right of the page to view the retention columns.
  6. Enter the amount to release in the Total Retention Released column.
    Example

    Before data entry, the cumulative total amount withheld for each line item is shown in the Total Retention column. In line item 1, the Total Retention is £2,500.00. In line item 2, it is £1,250.00. 

    retainage-before-data-entry.png

    Enter the amount of retention to release:

    • To release all of the amount withheld, enter 100% of the Total Retention value. In line item 1, enter £2,500.00 to release the entire amount. 
    • To release half of the amount withheld, enter 50% of the Total Retention value. In line item 2, enter £625.00 to release 50% of the £1250.00 amount. 

    After data entry, Procore reduces the Total Retention value by the amount of your data entry:

    retainage-after-data-entry.png

  7. Update the amount of retention to release in each line item on the payment application as needed. 
  8. Click Save.
    Procore saves the payment application in its current status. A banner appears at the top of the screen to show the total amount of retention being released on the payment application. 
    Example

    This is an example of the banner that appears to show the total amount of retention being released on the payment application. 

    banner-retainage-relesed.png

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