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Create a Subcontractor Progress Claim for Release of Retention in the Progress Billings 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.

Things to Consider

  • Required User Permissions:
    • To set and release retainage when editing the most recent invoice before, during, or after the billing period's 'Due Date':
    • To release retainage when editing the most recent invoice during the current billing period:
      • Ensure the Invoice type includes retainage. To know more, Configure Settings: Invoicing.
      • 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. 
  • Additional Information:
    • If there are multiple invoices for a single billing period, you can only edit the billed amounts on the most recent invoice.
    • If you are adding a payment schedule after the invoice is approved, enter the amount for the work you are claiming this period in the 'Proposed Amount' column of the invoice detail. To learn more, see Create a Payment Schedule. 
    • 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 Commitment tool.
  2. Go to Commitment for the progress claim you want to distribute.
  3. Click the Invoicing tab.
  4. Choose from these options in the Subcontractor tab:
    • To modify an existing progress claim, locate the 'Draft' progress claim to modify and click its Progress Claim # link to open it. 
      OR
    • To create a new progress claim, click Create > Create Progress Claim. Procore creates a new progress claim in the 'Draft' status.
  5. In the General tab of the progress claim, scroll to the Schedule of Values. 
  6. In the Schedule of Values, locate the line item(s) to modify and scroll to the right of the page to view the retention columns.
  7. 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

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

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

    banner-retainage-relesed.png

     Tips

 

If you would like to learn more about Procore's invoice management software and how it can help your business, please visit our construction invoice management software product page icon-external-link.png.