The valuation date was yesterday
You're the electrical subcontractor on a small commercial fit-out and two new build schemes. Each main contractor has its own valuation date and application format. On one, the date slipped past because the contracts manager was pricing a tender. On another, the application went in without three instructed variations because the site supervisor had them on WhatsApp.
Miss a date and you may wait until the next cycle to be paid. Miss a variation and it can be hard to get it accepted later.
Why applications are assembled at the last minute
An application pulls together percentage complete against the schedule of works, approved and pending variations, materials on site where the contract allows, and the running retention. Those live with different people: the site supervisor knows progress, the contracts manager knows the schedule, the office holds the payment history.
Nobody updates them as the month goes. So on the day, one person tries to rebuild the whole picture from memory, photos and emails.
| Part of the application | Where it usually is |
|---|---|
| Progress against schedule | Site supervisor's head |
| Instructed variations | Emails, texts, site diary |
| Pending or disputed variations | Contracts manager's notes |
| Retention held | Spreadsheet, maybe |
| Previous payments | Accounts software |
Variations are the hardest part. On a live site, instructions come from the site manager, the architect, the client's representative and sometimes the main contractor's QS, often verbally. Your supervisor does the work because the programme needs it, meaning to get it in writing later. Later comes at application time, when the details are hazy and the main contractor has no record either.
Cash tied up on every job
Late or incomplete applications delay cash on jobs where you've already paid for cable, containment and labour. Retentions are forgotten long after practical completion, sometimes indefinitely. Variations applied for late invite argument. The payment terms and any notices are a contractual matter for you and your adviser; the problem here is getting a complete, accurate application in on time.
It also affects how you are seen. Main contractors' QSs deal with many subcontractors, and the ones whose applications arrive complete and on time, with variations backed by clear records, are easier to deal with. That tends to show up in how quickly queries are answered and how you are treated on the next tender list.
The contract record we build
- Contract setup: each contract has its schedule of works, valuation dates, retention terms and application format entered once.
- Progress updates: the site supervisor updates progress by area or item on a phone form each week, with photos.
- Variation log: every instruction is logged when received, with who gave it, what it covers, and any supporting message or drawing, then priced by the contracts manager.
- Draft application: ahead of each valuation date, the application is drafted in the main contractor's format from progress, variations and retention, with a reminder to the contracts manager.
- Payment matching: payments received are matched to applications in Xero or QuickBooks, and shortfalls are listed by item.
- Retention tracker: retentions are tracked to their release points, and a reminder goes out when one falls due.
A month-end that isn't a scramble
Your contracts manager checks a draft rather than building one. Variations are on record the day they're instructed. Retentions are chased when due instead of discovered years later. And the owner can see what's owed on each contract without asking.
It also makes the final account far easier. When the job finishes, every variation, application and payment is already in one place, so agreeing the final account becomes a check rather than an archaeology exercise through old emails.
Is this your subcontract work?
- Applications are assembled the day before the valuation date.
- Variations have been left out of applications.
- Instructions arrive by text or WhatsApp and aren't logged.
- Retentions have been forgotten after completion.
- You can't quickly see what each main contractor owes.