An introduction to Payment Claims and Head Contracts.
Introduction
The Payment Claims module allows you to set up a Head Contract and track progress payments that you invoice to your customer and track the invoices that your subcontractors make to you over the life of a large project that spans many months.
Head Contractor
As the Head Contractor, you can set up a Head Contract for the agreed payment schedules that your customer will be liable to pay you.
As work progresses, you can update the Contract to make monthly Payment claims to your customer for progress payments for work that has been completed on the Project.
Payment Claims can then be sent to the customer, who will approve them so you can create invoice/s for those claims.
Sub Contractors
Also, as Head Contractor, you will receive Payment claims from your sub contractors for progress payments for work that they have completed on the Project. You will pay your subcontractors, and then claim those costs from your end customer.
Set up areas
You will need to setup the Receivable account, (your customer) Add a New Receivable Account, the Project and the Cost Codes that you need. Most of these can be set up as you go if they are not already in your system. Then you are ready to add your Contracts. Refer to Coding Structure for the Payment Claims Module to read more about the Codes you need to set up.
Add a Head Contract for the Project
This is the agreement of payment schedules for the project that you have created with your customer. You may have only one Head Contract for a Project. The Code for a Head Contract is created automatically from the Prefix in your settings and the next available number.
Here you can:
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Add Trade Summary lines to the Head contract and edit them.
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Assign Cost Codes and Budgets for the Project to the Summary contract lines.
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Retention Policy
You can add retention levels for your Head Contract. Please refer to Adding Retention percentage levels to your Head Contract for information on this area.
What's next?
Your next step is to add Sub Contracts for this Head Contract. This tracks the Subcontractors who complete work for you on the Project, and the claims that they will make to you, usually as monthly claims.
As the Project progresses, your Sub contractors will make claims to you for their completed work to date, and you will make claims to your customer for that work and for work that you have done to date.
Read about setting up Sub Contracts here: Payment Claims: Sub Contract Claims.
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Last updated: 28 September 2023