Construction - sub-contractor payment application

Step by step

1. Receive and Log the Payment ApplicationJobs

   The sub-contractor's payment application is received and logged against the relevant job and works order. The period covered and total claimed are confirmed.

2. Check Against Agreed ScopeWorks Orders

   The claimed amount is checked against the agreed sub-contract value, programme of works, and any approved variation orders. Out-of-scope or incorrect rate items are identified.

3. Certify the Payable AmountJobs

   The certified amount is agreed with the sub-contractor. Any disputed items are resolved before certification. The agreed amount and basis for deductions are recorded.

4. Raise or Update the Purchase OrderPurchase Orders

   A purchase order is raised for the certified amount, or an existing PO is updated for this application period. The application period and number are recorded for traceability.

5. Receive and Match the Sub-Contractor InvoicePurchase Orders

   The sub-contractor's invoice is matched against the PO and the certified amount. Discrepancies are flagged before approval - invoices that exceed the certified figure are returned for correction.

6. Approve for Payment and Update Job CostsInvoices

   The matched invoice is approved for payment. Job cost records are updated to reflect the sub-contractor payment for this period, keeping running costs accurate.

7. Confirm Payment and Close the PeriodPurchase Orders

   Payment is confirmed and recorded against the PO and job. If retention applies, the net payment amount is verified and the retention balance is logged separately.