Construction - Processing a Payment Application

Open the job record and record the valuation date, Payment Notice deadline, and final date for payment before preparing the application.

Tally cumulative works completed, add approved variations with written references, deduct retention to arrive at the gross certified amount.

Deduct the cumulative amount previously certified to produce the net sum due for this application period.

Send the completed application in writing to the contract administrator or employer, referencing contract, job number, and sequential application number.

If no valid Payment Notice is received by the contractual deadline, notify in writing that the application has become the notified sum due in full.

Log withheld amounts and stated reasons, assess against the variation log and job record, and respond to any disputed deductions in writing within the prescribed period.

Record payment against the certified or notified sum, update cumulative certified total in the job record, and log any shortfall as a disputed amount.

Record retention deducted, update the running retention balance, and log the forecast practical completion date for the first retention release.

We submit payment applications on time but have no system to track whether the employer has issued a Payment Notice within the contractual window - so we miss the deadline to enforce the notified sum.

Our variations are priced in emails and spreadsheets, and when the monthly application is due we can never be confident we have captured every approved change.

Retention balances are tracked informally - we know roughly how much is held but we have no record of the practical completion date or when the second half of retention becomes due.