Create Main Contract Payment Applications (Beta)

Objective

To generate an owner payment application to bill an upstream collaborator for work on a main contract.

Background

When managing your construction project in Procore, you can generate an owner payment application to bill an upstream collaborator on a main contract. Then, submit the payment application as a payment application. 

Things to Consider

• Required User Permissions:
  • 'Admin' level permissions on the project's Main Contracts tool.
• Additional Information:
  • About Group Row Billing on Main Contract Payment Applications 
  • Approved budget changes are reflected in new payment applications by default.
  • If budget changes and variations are approved after a payment application is created, you can configure Procore to add approved changes to main contract payment applications. See About Budget Changes on Main Contract Payment Applications.

Prerequisites

• Create Main Contracts 
• Approve Main Contracts
• Create a Billing Period. See Manage Billing Periods.

Steps

1. Navigate to the project's Main Contracts tool.
2. Find the contract for which you want to generate a payment application. 
3. In the Number column, click the link to open it.
   
4. In the contract, click the Payment applications tab. 
   
   
    
5. Click + Create and choose Create Payment application from the drop-down menu. 

    Tip

   Is the menu option greyed out? To activate this option, place the contract into the Approved or Complete status. 
   
   
   This opens the 'New Payment application for [Contract]' page.
6. In the Create Payment application card, do the following:

    Note

   An asterisk (*) below indicates the field is required. 
   • Payment application No.
     Enter a payment application number or leave it blank and edit later.
   • Billing Period
     Procore selects the open billing period's date range or, if no open period, the most recent period's date range.

      Tip

     How do you create a billing period? Only an payment application administrator can create billing periods with the Payment applications or Progress Billings tool. See Create Billing Periods. 

   • Populate the Bill of Quantities with Costs from the Selected Billing Period
     Mark this tickbox to turn the setting ON or remove the tick to turn the setting OFF. By default, this setting is turned OFF. 
     • ON. Procore populates the payment application's bill of quantities with eligible cost amounts from the selected billing period as follows:
       • Subcontractor payment applications in any Approved status. See What are the default statuses for Procore payment applications?
       • Direct costs with a 'Received Date' in the Approved status with a corresponding budget code in the contract's or funding's Bill of Quantities. 
       • Commitment variations in the Approved status with a corresponding variation or a corresponding budget code in the commitment's bill of quantities. 

          Notes

         If the following is true about a commitment variation, Procore automatically populates the data to the payment application's bill of quantities: 

         • It is connected to a main contract variation via a change event, the data populates the main contract variation.
         • It is NOT tied to a main contract variation, the data populates the main contract's Bill of Quantities line item with a matching budget code.

         If a variation does not meet the criteria above, Procore will NOT populate the data in the bill of quantities. 

     • OFF. Procore does NOT populate the Bill of Quantities with costs. Users must manually enter the data in the bill of quantities. 
   • Include backup from direct costs and payment applications in the selected billing period . 
     Mark this tickbox to turn the setting ON or remove the tick to turn the setting OFF. By default, this setting is turned ON. 
     • ON.  Updates the payment application's Attachments card in the payment application to contain these sections: Uploaded Attachments, Attachments from Subcontractor Payment applications and Attachments from Direct Costs. Procore adds the relevant attachments from the selected billing period as follows:
       • Subcontractor payment applications in any Approved status. See What are the default statuses for Procore payment applications?
       • Direct costs with a 'Received Date' in the Approved status with a corresponding budget code in the contract's or funding's Bill of Quantities. 
     • OFF. Only the Uploaded Attachments card and button are available. 
7. Click Create.
   Procore creates the payment application. Continue the next step.

   Next Step

   • Edit Main Contract Payment Applications

   See Also

   • About Main Contract Payment Applications