How to Raise Payment Applications and Certificates

This article is a guide to creating Payment Applications and Certificates in FastDraft.

This guide contains the following:

• Training Video: How to create an Application for Payment
• Training Video: How to create a Payment Certificate
• How to issue a Payment Application
• How to issue a Payment Certificate

Training Video: How to create an Application for Payment

Training Video: How to create a Payment Certificate

How to issue a Payment Application

Payment Applications will be submitted at the interval stated within contract data part 1. The Application should make it clear what is being applied for and why.

Creating a Payment Application

A full Application will always be in quite a lot of detail, so the intent within the Contract Management Platform is to complete a high level summary for the system, but the full Application in detail should be added as an attachment. The Payment Application workflow can be configured in the template so that users cannot create an application without adding attachments.

The Contractor can submit a new application by using the green “Create New” button...

... or by using the left-hand navigation panel.

From the Payment Applications register, click Create New.

There is then the requirement to complete:

• Assessment Date – date up until which the assessment is accounting for.
• Summary details – brief summary in words as to what the more detailed attached application is showing.
• Price for Work Done to Date – it then requires Contractor to state Price for Work Done to Date.
• Plus other amounts to be paid to the Contractor - once this is added it will calculate the Sub-total being claimed for in the given period.
• Less amount due in the last Payment Certificate - once this is added it will then calculate the Amount Due being claimed for in the given period.
• Tax which the law requires the Employer to pay to the Contractor - in some contracts the Employer is required to pay tax to the Contractor, this will calculate the Payment applied for this period.

Once you're ready to create your draft, click Create Draft.

The draft can be reviewed and amended as necessary – make sure you press “Save Draft” to save the changes. Any attachment should be added using the tab at the bottom of the draft form.

Once you are ready to communicate your application, click Communicate Payment Application, then Communicate.

Note: The Project Manager does not accept/reject the Application itself – they create a Payment Certificate to confirm what payment they will certify.

How to issue a Payment Certificate

The Project Manager needs to clearly communicate how they have assessed the Contractor’s Payment Application and what they are certifying. The assessment will include plus/minus other amounts as relevant, such as retention, delay damages, bonuses and KPI’s.

The Project Manager can create a new Payment Certificate by using the green Create New button...

... or by using the left-hand navigation panel.

From the Payment Certificates register, click Create New.

There is a requirement for the following details:

• Price for Work Done to Date– overall Prices to date that would be due.
• Plus other amounts– any other amounts they are entitled to be paid e.g. KPI’s, bonus for early Completion. This should be calculated as a lump sum price to be added.
• Less amounts to be paid– amounts that should be contractually withheld e.g. retention, delay damages (if they are already exceeding Completion Date). This should be calculated as a lump sum number to be withheld.
• Less amount paid in last payment certificate –the form is working out cumulative cost but then you need to deduct here what the last payment certificate was to see what this month’s amount should be.
• Tax law requires Employer to pay– adjustment for tax if relevant.
• Certified for payment– automatically calculated from all of the above.

Once you're ready to create your draft certificate, click Save Draft.

This can be checked (and amended if necessary) but remember to press “Save Draft” if the form is amended. Attachments can then be added before the Payment Certificate is communicated and appears on the Project Manager’s Payment Certificate Register.

Once you are ready to communicate your certificate, click Communicate Payment Certificate, then Communicate.