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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 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

  • Required User Permissions:
    • To edit an invoice before/during/after the current billing period,  'Admin' level permissions on the Commitments tool
      OR
    • To edit an invoice during the current billing period only, 'Standard' level permissions on the Commitments tool and you must be the invoice contact on the commitment. This action automatically adds you to the 'Private' drop-down list on the commitment.
       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.
  • 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 Invoicing tool.
  2. Click the Subcontractor tab. 
  3. Locate the commitment that you want to work with and click its link in the Commitment column. 
  4. Click the Invoices tab. 
  5. Locate the invoice to work with and click Edit
  6. Click the Detail tab in the invoice.
  7. Click the Edit button. 
  8. 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

 

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 here.