What is Cumulative Claiming?

PayLab sets up your Claims to be cumulative each month.

Overview

This article gives you a step by step guide on how cumulative claiming works in PayLab to ensure you are claiming the correct amount each month.

Cumulative Claiming Example

1. A line item is for $100,000. 
2. In January, you complete 10% of the work => In PayLab your claim against that line item 10% or $10,000
3. It gets Approved (if the other party uses PayLab, this is recorded automatically for you; if the other party doesn’t use PayLab, you can “Self-Approve” the value into PayLab to maintain records).
4. In February, you complete another 15% of the work - in PayLab your claim against that line item is now 25% or $25,000
5. PayLab then calculates that you have already had 10% Approved, so will remove the 10% previously claimed and approved, and create a new Claim for the outstanding amount (i.e. 15% in this example). 

Now, as you review the contract each month, you'll know how much billables you have left against each line item to help align with your planned expenditure over time (typically the S-curve of construction expenditure).