Payment application template
A payment application is a contractor's or subcontractor's request for an interim payment for construction work done up to a valuation date, showing how the sum is calculated from the work, variations and materials, less retention and earlier payments. It is sent once each valuation period. The parties, the project, the valuation and the sum change every time.
Made by DocuWeave. Use at your own discretion.
What changes each time
23 values. Everything else is your wording, kept exactly.
The parties and contract
- Payer's company name and address
- Payee's company name and address
- Contract or subcontract reference and date
- Project name and site address
The application
- Application number
- Valuation date
- Date of the application
- Due date
- Final date for payment
- Contract clause number for interim payments
Valuation
- Work items: description, contract value, percentage complete, value to date
- Variations: order number and date, description, value, percentage complete, value to date
- Materials on site not yet built in, with delivery notes
- Retention percentage
- Amounts previously applied for and paid
- Sum applied for
- VAT: excluded, included at a rate, or reverse charge
Payment and CIS
- Account name, sort code and account number
- Unique taxpayer reference
- Labour and materials elements
- Supporting documents
Signing
- Name, position and company of the signatory
- Date signed
The rules it usually needs
Written in plain English when the template is set up.
- One of several wordings
“State the VAT as excluded, included at a stated rate, or the domestic reverse charge.”
Only the chosen VAT wording appears next to the sum applied for.
- Only when…
“Include the Housing Grants, Construction and Regeneration Act 1996 heading and the pay less notice reminder unless the contract is with a homeowner for work on their own home.”
The application is marked as the payee's application stating the sum considered due, and section 111 is named.
- Only when…
“Include materials on site only when they are claimed.”
The value and the delivery notes are listed.
- Only when…
“Include the retention line only when retention is held.”
The percentage and amount are deducted from the gross valuation.
- Only when…
“Include the list of supporting documents only when they are attached.”
Records, photos, delivery notes or day-work sheets are listed.
- Only when…
“Include the CIS line only when the payee is a subcontractor under the Construction Industry Scheme.”
The unique taxpayer reference and the labour and materials split appear.
- Once for each item
“One row for each work item and one row for each variation.”
Two work items and one variation give three rows, adding up to measured work and variations to date.
Questions people ask
What is a payment application?
A request for payment, usually monthly, setting out the value of work done to a valuation date. In many construction contracts it also serves as the payee's notice of the sum considered due.
What is the difference between a payment application and an invoice?
An application states the sum the payee considers due and how it is calculated, and is followed by the payer's notice. An invoice is the payee's request for payment of an agreed sum, and often follows.
What is a valuation date?
The date up to which work is valued for the application. The contract sets or allows it to be set.
What is retention?
A percentage of each payment held back until the work is complete or the defects period ends. The application shows it as a deduction.
What is a pay less notice?
A notice the payer gives, before the deadline, if it intends to pay less than the sum stated, setting out the sum it considers due and how it is calculated.
Use this template
It opens in DocuWeave as a template you can check, change and publish. Nothing is used until you do.