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Procore

Set or Release Retainage on a Subcontractor Invoice

 Coming Soon

Objective

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

Background

In Procore, the term Retainage 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

 Notes
  • User permissions are NOT managed in the project's Invoicing tool. Instead, the Invoicing tool is designed for users with 'Admin' level permissions on the Prime Contracts and/or Commitments tool. 
  • If you are a collaborator (for example, an invoice contact for a subcontracting company that is performing work for a general contractor managing your contract in Procore), your ability to perform invoice-related tasks is determined by the project team that controls these settings for your Procore user account: 
    • Your user account's permissions on the project's Commitments and/or Prime Contracts tool.
    • Your membership on the 'Private' list of a specific prime contract, purchase order, or subcontract.
    • Your designation as an 'Invoice Contact' on a prime contract, purchase order, or commitment.
  • To learn more about permissions for specific tasks that can be performed with the Invoicing tool, see Permissions: Invoicing.
  • Required User Permissions:
    • To set and release retainage when editing an invoice before, during, or after the current billing period, 'Admin' level permissions on the project's Commitments tool.
    • OR
    • To release retainage when editing an invoice during the current billing period only, 'Standard' level permissions on the project's Commitments tool and you must be the designated 'Invoice Contact' on the contract. Invoice contacts are automatically added to the 'Private' drop-down list on the contract. If you have these permissions, see these tutorials: Send an 'Invite to Bill' to an Invoice Contact and Submit a New Invoice as an Invoice Contact
      OR
    • Read about the alternative permissions option: Show/Hide  
      • Some Procore customers choose to grant external users access permissions to the project's Commitments tool to allow them to create invoices. The following options is available, but NOT recommended: 
        • 'Read Only' level permission on the project's Commitments tool and designated as an 'Invoice Contact' ​​​​​​on the purchase order or subcontract. If users are granted these permissions, they have permission to modify the retainage amount to release on an invoice before a billing period's 'Due Date'. 

Steps

Place the Invoice SOV in Edit Mode

  1. Navigate to the project's Invoicing tool.
  2. Click the Subcontractor tab. 
  3. In the table, locate the subcontractor invoice to edit. 
  4. Click the Invoice # link to open it. 
  5. Scroll to the Schedule of Values section. 
  6. Click Edit in the lower right corner of the 'Schedule of Values' section.

    sub-invoice-edit-sov-button.png

Set and Release Retainage on SOV Line Items

If you want to set and release retainage on the line items in the SOV, follow these steps:

  1. Choose from these options to select the line items:
    • To select all of the line items in the SOV, click the box next to the 'Budget Code' label in the SOV table's header.
      OR
    • To select individual line items, click the 'Budget Code' column on the line item to place a checkmark in the box for the desired line items. 
  2. Click the pencil icon above the SOV table to open the 'Edit' pane on the right side of the page. 
    This opens the Edit page on the right side of the SOV table. 
    Example

    In the example illustration below, we have selected all four (4) line item checkboxes. You can then click the pencil icon at the top of the table to open the Edit pane on the right. In this example, we entered 10% to set the 'Work Retainage %' and '5%' to set the 'Materials Retainage %' on the selected line items. When you click the 'Apply' button, Procore sets the retainage amounts on each selected line item.

    sov-edit-retainage-pane.png

  3. In the Edit page, choose from these options:
    • Optional: Work Retainage %: Enter a percentage amount for the work retainage. This represents the retainage percentage being set on the line item for the current billing period. For example, if you want to set 10% retainage on the line item(s), enter 10. 
    • Optional: Materials Retainage: Enter a percentage amount for the material retainage. This represents the retainage percentage being set on the line item for the current billing period. For example, if you want to set 5% retainage on the line item(s), enter 5. 
    • Optional: Retainage Released %:  Enter a percentage amount for the retainage you want to release. This represents the retainage percentage being released this billing period. For example, if you want to set 10% retainage on the line item(s), enter 10. 
  4. Click the Apply button to save the retainage settings on the line item(s). 

 

If you would like to learn more about Procore's invoice management software and how it can help your business, please visit our construction invoice management software product page .