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Set or Release Retention on a Subcontractor Payment Application

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Objective

To set or release retention for line items on a subcontractor payment application from the Project level Payment applications tool. 

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

 Notes
  • Access permissions to the Payment applications & Progress Billings tools are governed by the permissions set on the Commitments and/or Client Contracts, Funding or Main Contracts tool. Procore tool names vary, depending on the language or point-of-view dictionary configured in Procore. See What dictionaries and languages are available in the Procore web application?
  • If you are a collaborator (for example, an payment application contact employed by a company performing work on a project managed in Procore, your ability to perform invoice-related tasks is determined by the Procore company account holder. Settings that the account holder may choose to provide to you include:
    • A Procore User account.
    • Access permissions to the project's Commitments and/or Client Contracts, Funding or Main Contracts tool.
    • Membership on the 'Private' list of a specific contract or funding
    • Designated as an 'Invoice Contact' on the contract or funding.
  • 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
    • Read about the alternative permissions option: 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'. 

Steps

Place the Payment application BOQ in Edit Mode

  1. Navigate to the project's Invoicing tool.
  2. Click the Subcontractor tab. 
  3. In the table, locate the payment application that you want to edit.
  4. Click the Payment application # link to open it. 
  5. Scroll to the Bill of Quantities section.
  6. Click the Edit button.

Set and Release Retention on BOQ Line Items

If you want to set and release retention on the line items in the BOQ, follow these steps:

  1. Choose from these options to select the line items:
    • To select all of the line items in the BOQ, click the tickbox in the 'Item Number' header of the data table. 
      OR
    • To select individual line items, mark the tickbox(es) in the 'Item Number' column for the desired line item(s). 
  2. In the Bill of Quantities, click the Edit button. 
  3. Optional: If you are a payment application administrator who wants to set the retention for the payment application, do the following: 
    • Mark one or more Item Number tickboxes. Then click the pencil icon above the data table in the Bill of Quantities. 
      This opens the Edit pane on the right side of the page. 
    • Enter the retention values to apply to the selected line item(s):
      • Work Retention This Period (%). Enter a percentage amount to indicate the percentage of work retention to be released this billing period. 
      • Retention Released. Enter a percentage amount to indicate the percentage of retention released.
      • Materials Retention (%). Enter a percentage amount to indicate the percentage of work retention to be released this billing period. 
    • Click Apply. 
  4. Choose from these options for entering work retention:
    • Work Retention This Period (£). Shows the currency amount for the work retention this period. The value that appears here is based on your entry in the 'Work Completed this Period' column. An entry in this cell lets Procore automatically calculate the percentage value in the 'Work Retention This Period (%)' column. 
      OR
    • Work Retention This Period (%). Enter a percentage amount for the work retention that you are requesting to be released this period. An entry in this cell lets Procore automatically calculate the currency value in the 'Work Retention This Period (£)' column. 
  5. In the Total Retention Released column, enter the total amount of work retention being requested for release on the line item. 
  6. Choose from these options for entering materials retention: 
    • Materials Retention (£). Enter a currency amount for the material retention that you are requesting to be released this period. The value that appears here is based on your entries in the New Materials Stored and Previous Materials Stored columns. An entry in this cell lets Procore automatically calculate the percentage value in the 'Materials Retention This Period (%)' column. 
      OR
    • Materials Retention (%). Enter a percentage amount for the material retention that you are requesting to be released this period. The value that appears here is based on your entries in the New Materials Stored and Previous Materials Stored columns. An entry in this cell lets Procore automatically calculate the percentage value in the 'Materials Retention This Period (%)' column. 
  7. In the Total Retention column, Procore calculates the sum of the 'Work Retention This Period (£)' amount plus the 'Materials Retention (£)' amount to represent the total retention amount on the payment application.