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Procore

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.
Limited Release
Free Procore accounts are currently only available in the United States and Canada.

Answer 

A Procore Pay Agreement sets the terms for the charges that a payee agrees to cover when receiving payments in Procore Pay. The Agreement clearly explains the expected 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 does Procore calculate estimated fees in a Procore Pay Agreement?
  3. How does Procore calculate actual fees on invoice payments? 
  4. How do payees accept Procore Pay Agreements?
  5. How does Procore collect Procore Pay Agreement fees?
  6. Can we pay Procore Pay Agreement fees upfront?
  7. Can payors cover the Procore Pay Agreement fees 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 does Procore calculate estimated fees in a Procore Pay Agreement?

To estimate the fees charged by Procore on a Procore Pay Agreement, Procore considers twenty (20) basis points, which is equivalent to .002% of the commitment value. Procore caps the total fee charged on invoice payments to $4,000.00 USD per commitment. 

Examples
  • If you have a commitment valued at $1,000,000.00 USD, the estimated fee would be $2,000.00 USD.
  • If you have a commitment valued at $2,000,000.00 USD, the estimated fee would be $4,000,000.00 USD. 
  • If you have a commitment valued at $3,000.000.00 USD, the estimated fee would be $4,000.000.00 USD, because the maximum Procore Pay Agreement fee is $4,000.000 USD. 

How does Procore calculate actual fees on invoice payments? 

Actual fees are determined on each invoice paid through Procore Pay. If there is a decrease in the overall commitment value, payees submit invoices for a lesser amount, which reduces the actual fee over the life of the commitment. Conversely, if the overall commitment value increases, payees submit invoices for greater amounts, which increases the actual fee over the life of the commitment. The maximum Procore Pay Agreement fee for a commitment is $4,000.00 USD. 

To calculate the actual fee for an invoice payment, multiply the invoiced amount by .002. 

Example

When an invoice for $100,000.00 USD is paid, Procore charges the payee a $200.00 fee after confirming receipt of the payment through Procore Pay. A similar charge is applied to each invoice payment until (1) the payee stops submitting invoices for payment, or (2) the maximum fee $4,000.00 USD has been charged.

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 Procore Pay Agreement fees?

All payees must provide Procore with a credit card number in Procore Pay. The credit card is automatically charged after Procore confirms the invoice payment receipt. 

Can we pay Procore Pay Agreement fees upfront?

No. At this time, Procore Pay Agreement fees cannot be paid in advance. 

Can payors cover the Procore Pay Agreement fees for payees?

No. At this time, Procore Pay Agreement fees must be paid by payees. 

See Also