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Procore

Set or Release Retainage on a Subcontractor Invoice

Objective

To set or release retainage for line items on a subcontractor invoice with the Commitments tool. 

Background

In Procore, the term retainge refers to the practice of withholding of a portion of a contract amount until the work is deemed satisfactorily complete. The withheld amount is specified in an agreement between the contracting party (the party paying for the work) and a contracted party (the person or company performing the work).  A common practice is to withhold 5-10% of a contract's total value until a milestone is reached. Then, the withheld amount can be released as a progress payment. When work is substantially complete, the withheld amount can be released as a final payment. 

Things to Consider

  • Required User Permission:
    • To edit an invoice before/during/after the current billing period,  'Admin' on the Commitments tool
      OR
    • To edit an invoice, during the current billing period only, 'Standard' on the Commitments tool. 
      AND
      • A member of the 'Private' drop-down list on the commitment.
        Note: Members of the 'Private' list are automatically added as an 'Invoice Contact' on the commitment. See Create Invoice Contacts.
  • Additional Information:
    • To set the same percentage of retainage on all line items in the invoice, enter a value to apply to all line items in the invoice.
    • To release retainage on all line items, enter a value  to apply to all line items. This move the desired percentage from the 'Currently Retained' column to the 'Released This Period' column.
    • For customers in Australia flag-australia.png, you can also manage withholding using the sliding scale retention feature. To learn more, see What is sliding scale retention?

Steps

  1. Navigate to the project's Commitments tool.
  2. Click the Invoices tab. 
  3. Locate the subcontractor invoice that you want to work with.
  4. Click the Detail tab.
  5. Click the Edit button. 
  6. Choose one of the following:

Set Retainage on All Line Items

  1. Under Set Retainage on All Line Items, do the following:
    set-retainage.png
  2. Enter the percentage to withhold in the Work Completed box. 
  3. Click Set.
  4. Enter the percentage to withhold in the Materials Stored box. To learn more, see How do I bill for stored materials in Procore?
  5. Click Set.

Release Retainage on All Line Items

  1. Under Release Retainage on All Line Items,  do the following:
    release-retainage.png
  2. Enter the percentage to release in the Work Completed box. 
  3. Click Release

See Also