SUBCONTRACTOR AND VENDOR PAYMENTS¶

INTRODUCTION¶

This document outlines the standard procedures for issuing payments to subcontractors and vendors, ensuring proper financial controls and documentation.

Payment Process Visualization

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flowchart LR
    %% Define participants
    subgraph Owner
    A[Owner Issues Payment]
    end

    subgraph CEO
    B[Receives Payment]
    F[Issues Checks]
    end

    subgraph PM[Project Management]
    C[Reviews Bills Due]
    D[Creates Payment List]
    E[Notifies CEO]
    G[Collects Lien Waivers]
    end

    subgraph Subs/Vendors
    H[Receives Payment]
    I[Signs Lien Waiver]
    end

    %% Define process flow
    A -->|Check/ACH| B
    B --> C
    C --> D
    D --> E
    E --> F
    F --> H
    H --> I
    I --> G

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PAYMENT PROCESS¶

1. PAYMENT RECEIPT FROM OWNER¶

Payment Receipt

CEO will receive payment from the owner, by check or ACH, and notify the project team.

Project management will notify CEO when payment is ready to be issued to a subcontractor or vendor
CEO will write the check
Project management is accountable to issue and collect signed lien waivers

2. ISSUING PAYMENTS TO SUBCONTRACTORS/VENDORS¶

In Buildertrend, navigate through each project, and review the due dates for each bill. The best practice is to actively review these dates prior to the Thursday Ops meeting when the checks are issued. Checks are issued once a week in batches.

Step 1: Identify Active Projects¶

Identify which projects are active in the progress or final billing stages.

Step 2: Review Bills by Project¶

Navigate to each project one at a time, and open "Financial", "Bills"

Tip

The bills will already be organized by the due date. The bills with the newest due date will be at the top.

Ensure all bills are issued prior to the due date, especially vendor payments
Create a list of all bills that need to be issued that week
Include the vendor, project number, and total in your list

Example: P24020 Capriotti's, $191.04, L&W Supply

Vendor Payment Process¶

Vendor Payment Cycle

All vendor accounts have different due dates each month but are on a recurring cycle every month.

For vendor payments:

CEO will open the online vendor account and our bank account
CEO will verify the bills provided by project management align with both accounts prior to issuing payment
Project management and CEO will verify the statement matches all bills to be paid at the end (totals will match)
Vendor payments are paid consistently every month

Subcontractor Payment Process¶

For subcontractor payments:

Ensure all subcontractors receiving payment are in compliance first
If they are compliant, inform CEO of: - Project number - Subcontractor name - Payment amount to be issued

3. CREATE LIEN WAIVERS FOR EACH PAYMENT¶

Create lien waivers for each payment that is issued. Follow lien waiver process guide.

CHECKLIST¶

Identify active projects in billing stages
Review bills by due date in Buildertrend
Create payment list with vendor/sub info and amounts
Verify compliance status for subcontractors
Issue payments (CEO)
Create and collect lien waivers (Project Management)
Verify all documentation is complete and filed properly