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Cases / Commercial & contracts
Commercial & contracts

Payment application and reconciliation

Value the work put in place this period against the contract, raise the application with the evidence behind it, and reconcile what you certified against what actually landed in the account.

3 steps12 minGeneral contractorSpecialist subcontractorCost consultant / QS

How it works, step by step

3 steps across the platform - what you do at each one, and why it matters.

1

Confirm the contract position

Contracts

Confirm the current contract sum, every agreed variation and the retention and payment terms, so the application is built on the number both sides have actually signed up to.

Why: An application worked off a stale figure, before the agreed variations went in, gets kicked straight back. Starting from the true contract position is what gets it certified without a fight.

InSigned contractAgreed variationsRetention & termsOutConfirmed contract sumCurrent entitlement base
2

Raise the payment application

Finance

Measure the work done this cycle, add materials properly on site and approved variations, then deduct retention and everything previously paid before you issue the application.

Why: Cash flow is the oxygen of a construction business, and subcontractors feel a late certificate first. An application that is clear and fully evidenced is the one that gets signed on the due date.

InConfirmed contract sumWork done this cycleMaterials on siteOutPayment applicationSupporting evidence
3

Reconcile certified against paid

Reconciliation

Line up what you applied for against what the certifier allowed and what was actually paid, then chase every under-certification, wrongly held retention or dropped line.

Why: A few percent shaved off each valuation vanishes quietly and never returns by itself. Reconciling every cycle, while the backup is still to hand, is how that money finds its way home.

InPayment applicationPayment certificateRemittance receivedOutReconciled positionShortfall claims

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