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What is a 'Procore Pay Agreement'?

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 General Availability in Select Markets (United States)
flag-us.png Procore Pay icon-external-link.png  is available in the United States. It is designed for General Contractors and Owner-Builders who act as their own General Contractors on a job. Procore Pay extends the Invoice Management icon-external-link.png functionality in the Procore web application to handle the payment process between general and specialty contractors.
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Free Procore accounts are currently available in English in Canada and the United States.

Answer 

A Procore Pay Agreement sets the terms for the platform access fees that a payee agrees to cover when receiving payments in Procore Pay. Fees may or may not be applied depending on the general contractor you are working with. The Agreement clearly explains the estimated total fee the payee must pay Procore to use the Procore Pay service.

Example

procore-pay-agreement.png

Related Questions

  1. How are Procore Pay Agreements created?
  2. How is the Procore Pay platform access fee calculated?
  3. How is the platform access fee calculated on individual invoice payments?
  4. How do payees accept Procore Pay Agreements?
  5. How does Procore collect the platform access fee?
  6. Can we pay the platform access fee upfront?
  7. Can payors configure the platform access fee for payees?

How are Procore Pay Agreements created?

Procore automatically creates a new Procore Pay Agreement whenever a payor changes the status of a commitment to Approved in the Project level Commitments tool. See Approve and Sign a Subcontract. 

How is the Procore Pay platform access fee calculated? 

The estimated Procore Pay platform access fee in a Procore Pay Agreement is calculated by Procore Payment Services, Inc. as 0.2% (twenty basis points) of the commitment value, with a maximum fee of $4,000.00 USD per commitment

Examples
These are some examples of the Procore Pay platform access fee.
 
Commitment Value (USD) Percentage (Basis Points) Estimated Fee (USD)
$1,000,000.00 0.2% (twenty basis points) $2,000.00
$2,000,000.00 0.2% (twenty basis points) $4,000.00
$3,000,000.00 0.2% (twenty basis points), not to exceed $4,000.00 USD per commitment $4,000.00 (maximum fee)

How is the platform access fee calculated on individual invoice payments? 

The platform access fee is 0.2% of each invoice amount paid through Procore Pay. Although fluctuations in the overall commitment value can lead to a corresponding change in the cumulative fees paid, the total platform access fee for any single commitment will not exceed $4,000.00 USD.

Example

For each invoice paid via Procore Pay, a fee of 0.2% of the invoice amount is charged upon confirmation of payment receipt. This fee applies to each invoice until either (1) no further invoices are submitted for payment, or (2) a cumulative fee of $4,000.00 USD has been reached. For example, a $100,000.00 USD invoice incurs a $200.00 fee.

How do payees accept Procore Pay Agreements?

To view and accept a Procore Pay Agreement, a payee must log into their free or paid Procore account. All payees must accept the Procore Pay Agreement to get paid. For instructions, see Review and Accept a Pending Procore Pay Agreement as a Payee.

How does Procore collect the platform access fee?

All payees must provide Procore with a credit card number in Procore Pay. The credit card is automatically charged after your invoice is approved. 

Can we pay the platform access fee upfront?

No. The platform access fee cannot be paid in advance. 

Can payors configure the platform access fee for payees?

Yes. Payors using Procore Pay can configure how platform access fees are collected from Specialty Contractors (i.e., Payees) who join Procore Pay. Payors have these options:

  • Payors can pay the platform access fees for specific projects on behalf of their payees.
    OR

  • Payors can apply the default setting, where fees are collected from payees as set in the Procore Pay Agreement.

See Also