Construction Industry Payment Practices

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This article explains how to use the PayTrack 365 functionality in the ERP system for construction industry requirements.

Features used in construction

Retention management

1. Configure retention tracking:

   • Choose the icon
   • Enter Retention Setup
   • Choose the related link

2. Set up retention parameters:

   • Standard retention percentages
   • Release triggers
   • Payment schedules
   • Documentation requirements

Monitor by project

• Payment milestones
• Stage completions
• Retention releases
• Dispute resolution

Industry requirements

Regulatory compliance

Required reporting.

Element	Requirement	Timeline
Payment Terms	Maximum 30 days	Each period
Retention Values	Total held	Monthly
Release Times	Average days	Quarterly
Disputed Amounts	Percentage	Each period

Industry benchmarks

• Main contractor payments: 30 days.
• Retention release: 12 months.
• Dispute resolution: 45 days.
• Supply chain payment: 95% on time.

Managing construction payments

Payment types

1. Progress payments:

   • Milestone tracking
   • Value calculations
   • Approval workflows
   • Payment scheduling

2. Retention payments:

   • Hold calculations
   • Release triggers
   • Documentation
   • Payment processing

Special considerations

1. Project stages:

   • Initial retention
   • Practical completion
   • Defects period
   • Final account

2. Documentation:

   • Completion certificates
   • Inspection reports
   • Release authorizations
   • Payment notices

Best practices

Payment management

1. Clear documentation:

   • Payment terms
   • Retention rules
   • Release conditions
   • Dispute procedures

2. Process efficiency:

   • Regular reviews
   • Automated triggers
   • Progress tracking
   • Stakeholder communication

Risk management

1. Monitor indicators:

   • Payment delays
   • Retention levels
   • Dispute frequency
   • Supplier health

2. Preventive measures:

   • Early warnings
   • Regular updates
   • Clear communication
   • Documentation control

Related information

PayTrack 365 Overview
Construction Sector Requirements
Handle Disputed Invoices
Supply Chain Finance