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
- A line item is for $100,000.
- In January, you complete 10% of the work => In PayLab your claim against that line item 10% or $10,000
- It gets Certified (if the other party uses PayLab, this is recorded automatically for you; if the other party doesn’t use PayLab, you can “Self-Certify” the value into PayLab to maintain records).
- In February, you complete another 15% of the work - in PayLab your claim against that line item is now 25% or $25,000
- PayLab then calculates that you have already had 10% Certified, so will remove the 10% previously claimed and certified, and create a new Claim for the outstanding amount (i.e. 15% in this example).
You will still need to manually enter the Certified to Date or Paid to Date value in the summary section at the bottom of the claim prior to issuing the Payment Claim. This is to ensure you check the value as being correct.
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).