Pay Applications and Waivers

A subcontractor requests payment for a defined period against a purchase order. The pay application identifies the project and company, with lines tied to the order’s priced work. Project Manager verifies the claim against site progress. Controller then makes the final approval decision with the period amount, retainage and backcharges available for review.

An approved claim still needs its required lien waiver. The payment workflow holds it at Pending lien waiver until the matching evidence is present. A waiver records its type, jurisdiction and document status, allowing the team to follow the reason a claim is waiting before handing it to accounting.

• Claim verification. Submitted applications reach Project Manager for review and become Verified when accepted for final approval. The record retains the verifying user and time. Claims for a Suspended subcontractor are refused by the routing workflow.
• Deductions and approval. Controller reviews the application amount alongside retainage and the recorded backcharge amount. A backcharge identifies its reason and the application receiving the deduction. Disputed deductions remain visible for resolution with the project team.
• Waiver release. An approved application waits for a waiver of the required type and matching state form. Signed or Received evidence can release the hold to Ready for payment. Controller follows the released claim into the connected payment process.

Agree the claim period, verification owner and final approval responsibility. Define which waiver type applies to progress and final claims, and who checks the jurisdiction. Confirm how a received signed document is recorded when signatures are collected outside the app.

Controller should reconcile the calculation of retainage, backcharges and the amount sent to accounting using a real claim. Decide how disputed deductions are resolved before applying them. Set up the accounting connection and define who records Paid and the payment date after the external outcome is confirmed.

A plumbing subcontractor submits a progress claim for an active project. Project Manager checks the claimed work against the order lines and verifies the application. A cleanup backcharge is under discussion, so the project team resolves whether it will be applied to this claim before Controller approves the amount.

The approved claim remains on hold because its required waiver has not arrived. A waiver from another project or with a different jurisdiction does not resolve the request. When the matching document is recorded as Signed or Received, the release workflow can move the application to Ready for payment.

Rehearse the same claim with the subcontractor marked Suspended. The submission should be refused by routing, and the team should address qualification before continuing. After a valid release, reconcile the accounting outcome before marking the application Paid. Keep the payment date available for the year-end review.

• Pay Application Approval Inbox — Verified claims bring amounts and verification details to Controller’s final review.
• Waiver Hold Queue — Approved claims waiting for waiver evidence remain visible by project and claim period.
• Ready for Payment — Released applications show the amount and purchasing reference for the accounting handoff.

Rehearse claim and payment review, then year-end preparation.