Table of Contents
This Payee User Guide provides specialty contractors with the steps you need to take to receive payments from a general contractor using Procore Pay. This guide provides an overview of Procore Pay and shows you how to:
NoteIf have not yet set up Procore Pay for your company, first follow the steps in the Payee Setup Guide. |
Pay builds on the existing Project Financials and Invoice Management tools in Procore to streamline the subcontractor invoice payment process and automate the lien waiver exchange.
Show/Hide Permissions
Users can take the action with this permission level. Users only need ONE of the marked permissions per row to take the action.
Free Accounts | Paid Accounts | In the Payor's Account | ||
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Action (Alphabetical) |
System Admin |
'Admin' on Company Directory | 'Read Only' or higher on Project Commitments | Notes |
Add a Bank Account as a Payee |
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Deactivate a Bank Account as a Payee |
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Disable Payments as a Payee |
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Edit a Bank Account as a Payee |
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Generate Lien Waivers on Subcontractor Invoices |
Users must also be the designated Invoice Contact on the commitment. | |||
Manage Active Procore Pay Agreements as a Payee |
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Preview Lien Waivers on Subcontractor Invoices |
Users must also be the designated 'Invoice contact' on the commitment. | |||
Review and Accept a Pending Procore Pay Agreement as a Payee |
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Regenerate Lien Waivers on Subcontractor Invoices |
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Search and Filter Payments as a Payee |
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Send a New Invoice as an Invoice Contact Using Procore Pay |
Users must also be the designated Invoice Contact on the commitment. | |||
Send a Request to Unlock a Signed Unconditional Lien Waiver |
Users must also be the designated Invoice Contact on the commitment. | |||
Set Up Procore Pay as a Payee |
Users with 'Read Only' access or higher on the Commitments tool must also be the designated Invoice Contact on the commitment. | |||
Share Lien Waiver Signature Authority from a Subcontractor Invoice |
Users must also be the designated Invoice Contact on the commitment. | |||
Share Lien Waiver Signature Authority from an Email |
Users must also be the designated Invoice Contact on the commitment. | |||
Sign Lien Waivers on Subcontractor Invoices |
Users must also be the designated Invoice Contact on the commitment. | |||
Unlock a Signed Unconditional Lien Waiver as an Invoice Contact |
Users must also be the designated Invoice Contact on the commitment. | |||
Upload Bank Verification Documentation as a Payee |
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View Bank Accounts as a Payee |
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View Payment Requirements as an Invoice Contact |
Users must also be the designated Invoice Contact on the commitment. | |||
View Signed Lien Waivers on Subcontractor Invoices |
Users must also be the designated Invoice Contact on the commitment. | |||
View the Payments Dashboard as a Payee |
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View the Payments List as a Payee |
In Procore, a Commitment is a purchase order or subcontract. Both commitment types are contracts that represent a legally enforceable financial agreement between two parties.
Depending on the General Contractor you are working with, you may sign a commitment using a commitments workflow, email, or DocuSign®.
General contractors can use Procore Pay to pay subcontractor invoices submitted in Procore Invoice Management. When a payor marks a commitment as 'Approved', Procore creates a Procore Pay Agreement with the commitment details and, if applicable, fees required to use Procore Pay. The agreement must be accepted for you to be paid using Procore Pay.
When a General Contractor sends a downstream collaborator an 'Invite to Bill', they invite an invoice contact to send a response. If you receive an invite, the Invited By person is the invoice administrator for the commitment that the invoice is billing against. This means you are an invoice contact and you can submit an invoice for work completed in the Billing Period. For instructions, see Respond to the Invite to Bill.
Does Procore send reminders about a Due Date? Yes. Procore emails a reminder to the invoice contact before the Due Date. It also sends a daily reminder after the Due Date passes. To limit the number of reminders you receive, always submit a Yes or No response before the Due Date. After you send your completed invoice or a No response, the reminders stop.
Below is an example of an 'Invite to Bill' sent to an invoice contact. The Subject line is: "Project Name: [Procore User] has invited you to bill." Note that the do-no-reply address from Procoretech is unmonitored and only sends transactional notifications.
To respond, review the Invoice Details in the invite. Under Do you want to bill this period? click a button:
In the New Invoice for [Contract #] page, update these sections: General Information and Schedule of Values before clicking Send.
Below is an example of the New Invoice for [Contract #] page that uses the Amount-Based accounting method. There are two accounting methods in Procore, but an invoice administrator can only select one for all of a project's contracts and invoices. See How do I set the accounting method for a contract?
This table provides you with helpful information to complete the data entry.
Field | Field Type | Description | How to complete the entry... | How is this created? |
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Contract Company | Read Only | Shows your company name. Note: This is the 'Contract Company' assigned on the purchase order or subcontract. The name is stored in the Company Directory. |
Verify your company name. If the name is wrong, contact the Invited By person on the 'Invite to Bill'. Important! Do not attempt to contact the person by replying to the invite. It's sent from an unmonitored do-no-reply address. |
Add a Company to the Company Directory |
Invoice # | Text | Optional. Enter your invoice number. | If your company is using custom invoice numbers, you can enter your invoice number here for reference. You can also leave the field blank. | - |
Billing Date* | Date | Shows the billing date for the current billing period. This is set by the invoice administrator. | Leave the date or choose a different one. | Manage Billing Periods |
Period Start* | Date | Shows the start date for the current billing period. This is set by the invoice administrator. | Leave the date or choose a different one. | Manage Billing Periods |
Period End* | Date | Shows the end date for the current billing period. This is set by the invoice administrator. | Leave the date or choose a different one. | Manage Billing Periods |
Billing Type: Progress Billing |
Option | Shows the 'Billing Type' option. Set by the invoice administrator, this determines whether you sign a Progress or Final lien waiver. Note: Depending on your agreement, you may be required to sign a Conditional and/or Unconditional lien waiver. |
Select this option if you will be billing incrementally for work completed. Note: To learn the difference between a Progress Conditional and Progress Unconditional lien waivers, see How are lien waivers categorized? |
Set the Default Lien Waivers on a Project |
Billing Type: Final Billing |
Option | Shows the 'Billing Type' option. Set by the invoice administrator, this determines if you must sign a Progress or Final lien waiver. Note: Depending on your agreement, you may be required to sign a Conditional and/or Unconditional lien waiver. |
Select this option if this is your final invoice. To learn about lien waiver types, see What is a lien waiver? Note: To learn the difference between Final Conditional and Final Unconditional lien waivers, see How are lien waivers categorized? |
Set the Default Lien Waivers on a Project |
Before you get started, important things to know about the Schedule of Values:
Use this method to invoice lump-sum amounts for the invoice line items on the Schedule of Values (SOV). Procore automatically calculates and adjusts the other entries on the line item for you. If you want to release retainage, enter a dollar amount as needed. Depending on your specific commitment, you may also have the option to bill for stored materials (pictured below). For details about the additional columns that appear when billing for stored materials, see About Stored Materials on Invoices.
Click here for more detailed information about the Amount Based accounting method.
The amount-based accounting method requires data entry of lump sum amounts for each line item on the Schedule of Values. Note that Procore uses your entries to automatically calculate and update values in other columns.
Use this method when invoicing for materials you've ordered in quantity. With this method, you either enter a percentage value 'Total Progress' column or a monetary value in the 'Work Progress' column. Procore automatically calculates and adjusts the other entries on the line item for you. If you want to release retainage, you can enter a dollar amount in the 'Retainage Released' column needed.
Click here for more detailed information about the Unit-Based accounting method.
The Unit-Based accounting method requires you to enter a quantity and unit price for each line item on the SOV. With this method, Procore automatically calculates line item totals for you.
A calculator icon indicates that Procore automatically calculates the line item's Amount based on the entries in the Qty, UOM, and Unit Cost fields. Click here to see an example.
A warning icon indicates a user's Amount entry overrides the automatic calculation with a custom amount. Click here to see an example.
To add attachments, click Attach Files to upload any files. You can also drag-and-drop any files.
To send your invoice back to the invoice administrator for review, click one of these buttons:
With Procore Pay, invoice contacts can preview, sign, and regenerate lien waivers for an invoice. Anyone with the ability to view an invoice can preview signed conditional lien waivers. For a list of tasks related to managing lien waivers with the Invoice Management tools, see Manage Lien Waivers on Project Invoices.
A lien waiver is a legal document signed in exchange for payment that waives the signer's right to file a lien for the amount specified in the waiver. A lien is a legal claim filed by a contractor or supplier against the property. The property is used as collateral to satisfy the debt(s) to the downstream collaborator(s). See What is a downstream collaborator?
In the simplest terms:
An Owner-Builder acting as their own General Contractor on a job or a General Contractor hires you, the specialty contractor, to perform work on a construction project. As the specialty contractor, you possess the right to file a lien against the owner's property until the Owner-Builder or General Contractor pays you for your work. Any subcontractors or suppliers that you hire to perform work or deliver materials on the job site also have the right to file a lien against the property, which serves as collateral for the work and/or materials they provide. A lien waiver signifies that a contractor (a general contractor, a specialty contractor, a subcontractor, and/or a supplier) has released their right to file a lien against the property.
In the United States, a signed lien waiver is typically provided by anyone working on a job site. This includes vendors who supply materials for a construction project and any specialty contractors or subcontractors who are not being directly paid by the property owner. With Procore Pay, a project's downstream collaborator(s) submit their lien waivers to the general contractor who is managing the project in Procore. Lien waivers are generated with the invoice that is submitted in the Project level Invoicing tool. See Create a Subcontractor Invoice.
On constructions projects, lien waivers provide these legal and financial protections to the contract parties:
With Procore Pay, payors can create four (4) different types of lien waiver templates to use on their construction projects: Progress Conditional, Progress Unconditional, Final Conditional, and Final Unconditional.
Lien waivers are generally grouped into these categories:
A progress waiver is provided to the property owner by the downstream contractor(s) and supplier(s) with a progress billing. A progress billing is an incremental invoice submitted by a downstream collaborator to the upstream collaborator (see What is a upstream collaborator?). Progress billing helps to ensure that downstream collaborators get paid for work completed over the course of a construction job, particularly on jobs that take years to complete.
A final waiver is provided to the property owner one time. Typically, at the end of the construction job with a final billing. A final billing is the last invoice submitted by a downstream collaborator to the upstream collaborator at the end of a project.
A conditional waiver is sent to the property owner prior to payment. It indicates the downstream collaborator is willing to waive their lien rights on the condition of getting paid.
When do you send a conditional waiver to the property owner? In the United States, contractors typically send lien waivers every thirty (30) days. The common practice is to send the lien waiver when the invoice is issued.
An unconditional waiver is sent to the property owner after payment is made. It indicates the downstream collaborator is willing to waive their lien rights, even if they don't receive payment from the property owner.
When do you send an unconditional waiver to the property owner? In the United States, executing and processing lien waivers can take several months. The common practice for general contractors is to send lien waivers after being paid for their work by the owner. However, practices can vary.
To preview the invoice's lien waivers, scroll to the Lien Waivers card in the invoice and click the Preview button. This downloads a PDF copy of the selected lien waiver. If your computer is set up to open PDF in a third-party PDF viewer, this opens the PDF. For instructions, see Preview Lien Waivers on Project Invoices.
How to open an invoice? If you are an invoice contact, you can open the invoices using one of these methods:
When you are ready to send the lien waiver to your recipients, read the Terms of Service provided and click Accept Terms and Send Document.
Once you are done signing the lien waivers you will come back into the Procore Invoice and you will need to click one of these buttons:
To save a Draft invoice, click Save as Draft. You can complete it later before the Due Date.
OR
To send your completed invoice for review, click Send. This changes the invoice's status to Under Review and sends the invoice administrator an email.
Invoice administrators can show or hide the 'Sub-Tiers' card on the 'Lien Rights' tab on the subcontractor invoices in a Procore project. The 'Sub-Tiers' card lets an invoice administrators and/or invoice contacts add billing data for each sub-tier subcontractor on an invoice. See Add Sub-Tiers to a Project Invoice. To clarify data entry guidelines, you can also add instructions. For example, you can add instructions indiciating that you are collecting waivers from sub-tiers that billed over $10,000 on the current invoice. Once enabled on a project, invoice contacts can also sub-tier billing data, upload signed sub-tier lien waivers and submit them to invoice administrators for review in a subcontractor invoice.
A sub-tier is any subcontractor (for example, a subcontractor, supplier, or vendor) who furnishes materials, supplies, or services connected to the first-tier subcontractor's obligations on a commitment. In Procore Pay, a first-tier subcontractor is the 'Contract Company' who enters into a commitment contract with a General Contractor. Both first-tier and sub-tier contractors might hire additional sub-tiers (for example, third-tier, fourth-tier, and so on).
To provide a complete list of everyone working on a project:
If you are NOT required to collect waivers on an invoice, the 'Sub-Tier Information for This Invoice' card appears. If you need to collect waivers, one or more cards appear. The title of each card matches the project's waiver collection requirements set on the Invoicing tool. See Enable Sub-Tier Waivers on Subcontractor Invoices as an Invoice Administrator. To upload waivers for a sub-tier, see Upload Sub-Tier Waivers to a Subcontractor Invoice as an Invoice Contact.
If there are no sub-tier subcontractors for the project invoice, click the Certify No Sub-Tiers button. The message 'You have certified no sub-tiers are involved in this project' appears.
To remove a new sub-tier, click the Remove icon before clicking Save.
If you are NOT required to collect waivers on an invoice, the 'Sub-Tier Information for This Invoice' card appears. If you are required to collect waivers for the current invoice or a previous invoice, one or more card(s) appear. The title of each card matches the project's waiver collection requirements, which are set on the Invoicing tool by an invoice administrator. See Enable Sub-Tier Waivers on Subcontractor Invoices as an Invoice Administrator. To upload waivers for a sub-tier, see Upload Sub-Tier Waivers to a Subcontractor Invoice as an Invoice Contact.
If you are submitting a subcontractor invoice for the billing period 3/1/2024 - 3/31/2024, you can:
If you need to add sub-tiers to this card, complete the steps in Add Sub-Tiers to a Subcontractor Invoice.
If you are an invoice contact submitting a subcontractor invoice for the billing period 3/1/2024 - 3/31/2024, you can:
If you need to add sub-tiers to this card, complete the steps in Add Sub-Tiers to a Subcontractor Invoice.
If you are submitting a subcontractor invoice for the billing period 3/1/2024 - 3/31/2024, you can:
If you need to add sub-tiers to this card, complete the steps in Add Sub-Tiers to a Subcontractor Invoice.
If you are ready to submit the invoice for review, you may do so now. If you want to submit the invoice at a later time, you have the option to save the invoice. Choose one (1) of these options:
After your invoice is submitted and approved by the general contractor, they will create a disbursement for the invoice amount. After a disbursement is created, the following actions are automated through Procore:
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