Prime contract invoice overview

Progress payments for prime contracts are managed through the Prime Contract Invoice feature. For commercial contractors, these invoices are often called an Application for Payment, while residential contractors typically refer to them as a Bank Draw when a construction loan is the funding source.

Prime contract invoices must not be confused with subcontract invoices, which represent progress payments for subcontracts.

Sage Construction Management includes invoice wizards designed to help you efficiently manage all invoice-related tasks.

About prime contract invoices

• The processing of prime contract invoices varies based on the contract type.
• The invoice order number, not the invoice date, determines previous invoice amounts. Sage Construction Management automatically assigns the next order number when you create a new invoice. For example:

  Invoice Date	Order #	Invoice #
  31-Mar-2024	1	001
  30-Apr-2024	2	002
  15-May-2024 *	3	003
  15-May-2024 *	4	004

  * You can create two invoices on the same date, but make sure each one references the correct order number.

• After a prime invoice is saved, the project number cannot be changed. If the project number is incorrect, you must first delete the transaction and then change it as needed.

• Do not select the Approved checkbox on a prime invoice until it has been reviewed and authorized by the owner or manager.

• Default retainage percentages for work and stored materials are copied from the prime contract, but you can adjust them on the invoice.

• Previous, current, and billed retainage amounts are tracked by job cost code. They are not tracked in the item details table, for example, items in the original contract or change orders.
• Expenses and timecards must meet the following requirements to be imported into a cost plus prime invoice:
  • They cannot be referenced on a previous prime invoice.

  • Both the expense issue date and the status date must be earlier than or equal to the invoice issue date.

  • The timecard date must be earlier than or equal to the invoice issue date.
  • The status must be Approved.
  • The billable status must be Billable.
  • The expense or timecard billable amount must be greater than zero.

• Always invoice or release retainage last. For example, if a prime invoice includes original contract items, change orders, and retainage, the retainage should be processed last.

• You can configure Sage Construction Management to automatically lock prime invoices when they are exported to an accounting system through AccountingLink. Locking the invoices prevents further changes or deletions.

Before you begin

• Make sure that the prime contract is marked as Approved with a status date.
• Optionally, you can reference sales or goods and services tax codes on billed retainage by job cost code.
• For Cost Plus contracts:
  • A job cost code is required when entering invoice items.
  • Optionally, add default Cost Plus prime invoice markups.
• For Fixed Lump Sum or Unit Price contracts, ensure change orders are approved with issue and status dates before the planned invoice date. Otherwise, they cannot be imported into the prime invoice.

Add prime contract invoices

Prime contract invoices are processed differently based on the contract type.

• Add an invoice for a Fixed Lump Sum prime contract
• Add an invoice for a Cost Plus prime contracts
• Convert a work order (WO) to a prime invoice for a Cost Plus contract
• Add an invoice for a Unit Price prime contract
• Release retainage for prime invoices

Edit prime contract invoices

Before you begin

• If a workflow rule applies to a prime contract invoice and has been initiated or approved, no changes are allowed unless the rule is abandoned.

• If a prime contract invoice has been exported and automatically locked, only an administrator can unlock it to make non-financial changes. Learn more about how to configure Sage Construction Management to automatically lock transactions after they have been exported.

Edit prime contract invoice details

• Edit an invoice for a Fixed Lump Sum prime contract
• Edit a Cost Plus prime contract invoice
• Edit a Unit Price prime contract invoice
• Edit the tax total of a prime contract invoice

Manage invoice tax codes

• Edit the tax total for a prime contract invoice
• Reset tax codes in prime contract invoices
• Tax code logic for prime contract invoice items

Manage retainage for prime contract invoices

• Release retainage for prime invoices
• Resolve missing retainage on prime contract invoices

Other

• Lock or unlock a prime contract invoice
• Reset a prime invoice after contract changes
• Print, share, or email the prime contract invoice details or Lien Waiver