By the end of this guide, you will be able to:
✓ create a Project Pay Application in BuildOps.
✓ Share a Pay Application / Invoice with your customer.
✓ Post a Pay Application / Invoice to your accounting software.
Things to consider
Before you get started, ensure that:
You have set up your Project Settings.
Ensure your project's details, schedule of values (SOV), and retainage are set up accurately during Project Setup.
SOV line items define the line items on the Pay Application.
Once created, the Pay Application is automatically turned into an invoice.
What is a Project Pay Application?
A Project Pay Application, often referred to as an AIA document, serves as a formal invoice in the construction industry. It is a standardized document recommended by the Architect Institutes of America (AIA) and outlines the information required when contractors submit documentation for payment.
Why Use Project Pay Applications?
In construction, unlike service jobs, projects often take longer to complete. Contractors invest their own funds upfront for labor, equipment, and materials. Waiting until the project is complete to bill for these expenses isn't feasible. Project Pay Applications, or progress billing, is the solution to ensure contractors receive payments as the project progresses, maintaining their cash flow.
Steps to Create a Project Pay Application
1. Navigate to the Project: Navigate to the specific project for which you want to create the Pay Application.
2. Click the Finance tab → Pay Applications.
3. Click "Generate Pay Application."
4. Complete the Pay Application Details: Fill in the necessary details:
● Send To: Indicate where the Pay Application is going, typically a customer or stakeholder. The contacts available in this dropdown are set up on the Customer page.
● Return To: Indicate who the Pay Application will be returned to. The names available in this dropdown are set up in Personnel Settings.
● Contract For: (optional) This field can be used as a subject.
● Custom Number: You can override the default numbering for this Pay Application, if applicable. Pay Applications often leave gaps in numbering when voided. Leverage the Custom Number feature to reuse voided numbers or add identifiers like suffixes (e.g., '001A') to maintain an organized sequence. For example, if Pay App #001 is voided and you want the next pay application to also be numbered as #001, simply enter "001" in the 'Custom Number' field during creation. This ensures the new pay application reflects the desired number. Additionally, appending letters to numbers (e.g., #001A) can help differentiate changes while maintaining continuity.
● Billing Period: Define the billing period, accounting for the work done and materials used during this time.
● Distribute To: Field from the AIA, that specifies who this is getting sent to (the Owner, GC, Engineer, etc.)
● Application Date: This date will default to today’s date, but this can be changed if needed.
5. Enter Line Item Details: Select the appropriate SOV line items and specify the percentage or dollar amount you want to bill for each.
● Pay Application line items are populated based on what has been set up in the project SOVs.
● Ensure you also account for stored materials or equipment, if applicable.
● The system will automatically calculate the balance to finish.
6. Retainage ('Holdbacks' in Canada): If your project involves retainage (a portion of payment held back until project completion), you can specify the amount to bill for retainage.
When a pay application includes retainage, the invoice created in BuildOps displays a standard retainage line.
For companies in the United States and most other regions, this line appears as Retainage. For companies in Canada, it appears as Holdbacks.
This label is standard in BuildOps and is not controlled by the retainage item selected in the project settings.
The retainage item selected in the project settings or schedule of values is what determines the accounting item used when the invoice is sent to the connected accounting system. The invoice label in BuildOps stays standard, while the accounting item controls how the retainage maps in the accounting system.
7. Review and Save: Double-check all the information entered. Click “ADD PAY APPLICATION” to save the Pay Application as a draft.
8. Click the three dots on the right side of Pay Application to display additional actions (view, preview, view invoice, edit, email, or void).
9. Once a Pay Application has been added, an Invoice with the same line items will automatically be created. Click the “Invoices” tab to access project invoices.
10. To view, edit, or share an Invoice, click the Invoice number hyperlink to be redirected to the Invoice page.
How To Share A Pay Application
11. To share a Pay App, open the Pay Application communication history by clicking the Pay App number hyperlink.
12. To preview, edit, or make the Pay App available in Project Files, click an option at the top right of the screen.
Example Pay Application PDF
13. To add any relevant attachments, click “+ Add Attachments” in the Attachments section and select an attachment from your computer or Project Files.
14. To email a Pay App, click “EMAIL”.
15. Fill in the data fields to email the Pay Application.
16. To add additional attachments to the email, click “ADD ATTACHMENTS” at the bottom of the screen.
17. Click “SEND” (upper right corner).
18. The Pay Application Communication History will display all email correspondence.
How to Post A Pay Application / Invoice
1. To post a Pay Application / Invoice, click an Invoice hyperlink number to access the Invoice.
2. Click “POST INVOICE”.
3. On the project page, both the Pay Application and Invoice status will change to Posted.
Frequently Asked Questions
Q: Why is the signature or certification section missing on my Pay Application?
A: If the signature or certification section is missing on a Pay Application, first check whether the Hide Certification Section on Pay Applications option was selected on Step 1 of Project setup. When this option is enabled, the certification section is intentionally hidden from the document.
Q: What happens to Pay Application numbering if one is voided?
A: Voiding a Pay Application can leave a gap in numbering. If you want the next Pay Application to use a specific number, enter it in the Custom Number field when creating the new Pay Application.
Q: Can I reuse the same Pay Application number?
A: Yes. When you create the replacement Pay Application, you can enter the number you want in the Custom Number field. For example, if Pay App #001 was voided, you can create the next Pay Application using 001 again, or use a variation such as 001A.
Q: Where can I find the invoice created from a Pay Application?
A: After the Pay Application is created, go to the project's Invoices tab and click the invoice number hyperlink to open it.
Q: Can I void a Pay Application from the project?
A: Yes. On the project's Pay Applications list, click the three dots on the right side of the Pay Application to access additional actions, including Void.