How do partial payments streamline finances on construction projects? (Review)
General Availability in Select Markets (United States)
Procore Pay is available in the United States. It is designed for General Contractors and Owner-Builders who act as their own General Contractors on a job. Procore Pay extends the Invoice Management functionality in the Procore web application to handle the payment process between general and specialty contractors.
Procore Pay is available in the United States. It is designed for General Contractors and Owner-Builders who act as their own General Contractors on a job. Procore Pay extends the Invoice Management functionality in the Procore web application to handle the payment process between general and specialty contractors.
Answer
Partial payments help payors with Procore Pay manage cash flow across their construction projects. This strategy lets them strategically distribute funds in alignment with their payment flows and work progress. Partial payments are essential for paying subcontractors for completed portions of work or upon materials delivery, even if the scope isn't yet finished. This ensures subcontractors receive timely compensation while allowing General Contractors to manage their expenditures responsibly.
Partial payments also help to ensure adherence to contract terms, particularly for performance milestones. By releasing funds as specific stages of work are completed, teams can maintain project momentum and accountability. Should minor disputes arise, partial payments also allow payments for satisfactory work while addressing outstanding issues. In addition, they can be linked to the receipt of partial lien waivers to compensate downstream parties.