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Create a Subcontractor Progress Claim for Release of Retention in the Invoicing Tool

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Objective

To create a subcontractor progress claim 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 progress claim before, during, or after the billing period's 'Due Date':
    • To release retention when editing the most recent progress claim 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 progress claim before the billing period's 'Due Date':
          • You must be an progress claim contact on the commitment.   
            AND
          • You must have 'Read Only' level permissions on the Project level Commitments tool. 
  • Additional Information:
    • If there are multiple progress claims for a single billing period, you can only edit the billed amounts on the most recent progress claim.
    • If you are adding a payment program after the progress claim is approved, enter the amount for the work you are claiming this period in the 'Proposed Amount' column of the progress claim detail. To learn more, see Create a Payment Program. 
    • You can also manage withholding using the sliding scale retention feature. To learn more, see What is sliding scale retention?
    • To learn how to create a progress claim to release retention on a progress billing, see Set or Release Retention on a Subcontractor Progress Claim.

Steps

  1. Navigate to the project's Invoicing tool. 
  2. Click the Subcontractor tab.
  3. Locate the subcontractor progress claim to update in the table. Then click its Progress Claim # link to open it.
    This opens the progress claim in the project's Commitments tool. 
     Notes
    • When navigating to a progress claim from the Invoicing tool, your user account must be granted the required user permissions detailed above in order to view and gain access to the progress claim.
  4. In the progress claim, click the General tab. The General tab is active by default when you open a progress claim.  
  5. Scroll down to Schedule of Values. 

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

    1. Choose from these options to select the line items:
      • To select all of the line items in the SOV, click the checkbox in the 'Item Number' header of the data table. 
        OR
      • To select individual line items, mark the checkbox(es) in the 'Item Number' column for the desired line item(s). 
    2. In the Schedule of Values, click the Edit button. 
    3. Optional: If you are a progress claim administrator who wants to set the retention for the progress claim, do the following: 
      • Mark one or more Item Number check boxes. Then click the pencil icon above the data table in the Schedule of Values. 
        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 progress claim. 
  7. Optional: If the contractor will create a payment program once the progress claim 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 program feature must be enabled in the Invoicing tool’s configuration settings. See Configure Settings: Invoicing.
  8. Click Save.
  9. Optional. If the progress claim administrator requires you to include a signed copy of the PDF, complete the following steps:
    1. Choose Export > PDF.
    2. 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 progress claim an attachment. 
      • Electronic Signature. You can add a digital or electronic signature to the progress claim. 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 progress claim as an attachment. 
  10. Click the Summary tab.
  11. Click Edit.
  12. In the Attachments section, upload any required backup documentation, such as lien waivers and the signed export PDF.
  13. Choose from the following options:
    • If you are ready to submit the progress claim to the contractor, click Submit for Review. This changes the progress claim status to Under Review. 
    • If you are NOT ready to submit the progress claim, click Save. This sets the progress claim status to Draft.
      Note: Once you submit the progress claim to the contractor, you will no longer be able to edit it unless the contractor changes the status Revise & Resubmit.