Create a Subcontractor Payment application for Release of Retention
Objective
To create a subcontractor payment application for the release of retention as a final payment.
Background
Things to Consider
- Required User Permissions:
- To set and release retention when editing a payment application before, during or after the current billing period, 'Admin' level permissions on the project's Commitments tool.
OR - To release retention when editing a payment application during the current billing period only, 'Standard' level permissions on the project's Commitments tool and you must be the designated 'Invoice Contact' on the contract. Payment application contacts are automatically added to the 'Private' drop-down list on the contract. If you have these permissions, see these tutorials: Send an 'Invite to Bill' to a Payment Application Contact and Submit a New Payment application as a Payment Application Contact.
OR - To release retention when editing a payment application during the current billing period only, 'Standard' level permissions on the project's Commitments tool and you must be added to the 'Private' drop-down list on the contract.
OR - Read about the alternative permissions options: Show/Hide
- Some Procore customers choose to grant external users access permissions to the project's Commitments tool to allow them to create payment applications. The following options is available, but NOT recommended:
- 'Read Only' level permission on the project's Commitments tool and designated as an 'Invoice Contact' on the purchase order or subcontract. If users are granted these permissions, they have permission to modify the retention amount to release on a payment application before a billing period's 'Due Date'.
- Some Procore customers choose to grant external users access permissions to the project's Commitments tool to allow them to create payment applications. The following options is available, but NOT recommended:
- To set and release retention when editing a payment application before, during or after the current billing period, 'Admin' level permissions on the project's Commitments tool.
- Additional Information:
- You can create payment applications for purchase orders and subcontracts.
- If you are the payment application contact for the 'Contract Company' on a purchase order or subcontract, you have these options for submitting a payment application:
- Ask someone with sufficient access permission to Procore to create the payment application on your behalf.
OR - Follow the steps in Submit a New Payment application as a Payment Application Contact.
- Ask someone with sufficient access permission to Procore to create the payment application on your behalf.
- If there are multiple payment applications for a single billing period, you can only edit the billed amounts on the most recently created payment application.
- If the contractor will create a payment programme once the payment application is approved, enter the amounts for the work you are claiming this period in the 'Proposed Amount' column of the payment application detail. In order for this column to appear, the payment programme feature must be enabled in the Payment applications tool’s configuration settings. See Configure Settings: Payment applications.
Prerequisites
Steps
- Navigate to the project's Payment applications tool.
- Click the Subcontractor tab.
- Locate the subcontractor payment application to update in the table. Then click its Payment application # link to open it.
This opens the payment application in the project's Commitments tool.Notes
- When navigating to a payment application from the Payment applications tool, your user account must be granted the required user permissions detailed above in order to view and gain access to the payment application.
- In the payment application, click the General tab. The General tab is active by default when you open a payment application.
- Scroll down to Bill of Quantities.
- Optional: If the contractor will create a payment programme once the payment application is approved, enter the amounts for the work you are claiming this period in the 'Proposed Amount' column.
Note: In order for the 'Proposed Amount' column to appear, the payment programme feature must be enabled in the Payment applications tool’s configuration settings. See Configure Settings: Payment applications. - Click Save.
- Optional. If the payment application administrator requires you to include a signed copy of the PDF, complete the following steps:
- Choose Export > PDF.
- Sign the PDF.
Tip
How do you add a signature to a PDF? Depending on your specific business requirements, there are different options you can evaluate to determine the best option for you:
- Wet Signature. You can print out the exported PDF file and add a physical signature. Then use a scanner or camera to capture the signed document and add it to your payment application an attachment.
- Electronic Signature. You can add a digital or electronic signature to the payment application. There are a variety of third-party software vendors, such as DocuSign© and Adobe® Acrobat™, that provide signature capabilities for PDF files. After you sign the document, add it to your payment application as an attachment.
- Click the Summary tab.
- Click Edit.
- In the Attachments section, upload any required backup documentation, such as lien waivers and the signed export PDF.
- Choose from the following options:
- If you are ready to submit the payment application to the contractor, click Submit for Review. This changes the payment application status to Under Review.
- If you are NOT ready to submit the payment application, click Save. This sets the payment application status to Draft.
Note: Once you submit the payment application to the contractor, you will no longer be able to edit it unless the contractor changes the status Revise & Resubmit.