The term stored materials refers to materials have been purchased prior to their planned use on a construction project. These are materials are purchased by a general contractor and stored on the job site before it is used.
Typically, each item or material is tracked on a line item in a Prime Contract's schedule of values and is submitted to the owner for payment. Common examples of stored materials include: Bricks, Roofing Tiles, Drainage Pipes, Sheet Materials, Cement, and Aggregates.
How do I bill for stored materials?
In Procore, you bill for stored materials on owner invoices as follows:
- Column F: Enter the value of Materials Presently Stored for which payment is sought. The total of the column must be recalculated at the end of each pay period. This value covers both materials newly stored for which payment is sought and materials previously stored which are not yet incorporated into the Project. Mere payment by the Owner for stored materials does not result in a deduction from this column. Only as materials are incorporated into the Project is their value deducted from this column and incorporated into Column E (Work Completed—This Period).
- Every time you create a new invoice in Procore, any value currently in Column F - Materials Stored will still be in Column F in the new owner invoice. If you are incorporating those materials into the project this month, you will need to manually move the proper amount from Column F to Column E - Work Completed this Period.
- Procore allows for there to be different retainage percents on Work Completed vs. Materials Stored. In the event that you do use a different retainage percent on each, it's important to note that the retainage value will be recalculated when you move an amount from Materials Stored to Work Completed. Here is an example where Work Completed Retainage is set at 10% and Materials Stored Retainage is set at 5%:
- Note: Unit/Quantity accounting method contracts will not have materials presently stored on their owner invoices.
Owner Invoice 1
- $50,000 Work Completed
- $5,000 Work Completed Retainage withheld
- $10,000 Materials Stored
- $500 Materials Stored Retainage withheld
Owner Invoice 2 (Materials get incorporated and an additional $10,000 of work is completed)
- $70,000 Work Completed ($50,000 from Previous + $10,000 Work this Period + $10,000 Materials Stored)
- $7,000 Work Completed Retainage withheld
- $0 Materials Stored
- $0 Materials Stored Retainage withheld
In this example, a lower retainage amount was withheld on the materials while they were stored and then the full retainage was taken once they were incorporated into the project.
- Looking at the G702 Summary Page, note that line 5B for Materials Stored Retainage will only show a value if there are currently materials stored. All retainage moves into Work Completed retainage as the materials are incorporated into the project.