POLICY: Internal Subcontractor & Owner Pay Application Process

PURPOSE: To ensure both C&C and Subcontractors are paid timely and accurately.

RESPONSIBILITY: Project Manager/Construction Administration


Subcontractor/Vendor Pay Applications
1. On the 21st of each month (or the preceding Friday in the event the 21st falls on a weekend), Accounting will print all pay applications and place them in the job folder for approval.
2. If a sub has not uploaded the executed pay application, accounting will email the sub and cc the PM & APM.
3. In the case that a sub misses the deadline and PM decided to accept their pay app, the PM/APM will be responsible for printing and approving the pay app and putting it in the folder on the approved side for accounting to process.
4. Email from the PM to Accounting notifying them of the additional sub(s) added to the approved list will also be required. Director of Administration to be copied.
5. All held checks need to be clearly tabbed with sticky note in left pocket of the folder.
Note: No pay applications will be removed from the black folder under any circumstances. Approved pay apps/invoices go in the right pocket of the folder. Unapproved go in the left pocket.

Owner Pay Applications
1. Project management will create the Owners “Pencil Draw” by the 25th (or the preceding Friday in the event the 25th falls on a weekend), and submit to owner’s rep for pre-approval.
2. Upon approval of the pencil draw by the Owner, PM will submit the owner’s draw to accounting for formal distribution.
3. Accounting will ensure that the draw is approved, signed, and notarized along with the corresponding waiver.
4. Accounting will send the approved owner’s draw out no later than 30th of each month. (Unless Owner Contract Agreement requires this to be earlier). All pay applications should be distributed via Procore email.
5. Accounting will pull all backup and place in Dropbox.
6. Accounting will be responsible for collecting subcontractor and second tier lien waivers utilizing monthly lien waiver tracking spreadsheet.
7. Upon funding of the owner draw each month, Accounting will email PM/APM consolidated list of subs/vendors to be paid for approval. It is the PM’s responsibility to verify this list is accurate.
Note: Project management will be responsible for updating Dropbox in the event revisions are made to the Owner Pay Application. Old/out of date draws should be removed or placed in separate folder clearly marking draw as out of date.


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