Accelerate month-end reporting between Contractors and Subcontractors by streamlining the Applications for Payment process into a structured, auditable workflows. Initiate change orders and track progress, apply retentions and back charges with full compliance. A dedicated Subcontractor portal, automated notifications, and digital validation keep all parties aligned, while approved Applications for Payment instantly update budgets, commitments, and Estimate At Completion (EAC).
Bauwise helps construction teams optimize Applications for Payment — to improve cost control, streamline workflows, and deliver on budget.
Construction project profitability
Construction Projects
Of Construction Budgets
Capture, approve, and integrate change orders into Applications for Payment. Allow subcontractors to add change orders line items, ensuring all costs are tracked, approved, and reflected in commitments and budgets. Keep construction project costs accurate and disputes to a minimum.
Remove the risks of budget overruns, missed change orders, and non-compliant claims. Ensure every Application for Payment is accurate, traceable, and aligned with contract terms — protecting both the project and the contractor. Guarantee that retentions, back charges, and change orders are applied correctly. Built-in lump-sum safeguards prevent Subcontractors from overspend the agreed contract amounts, skipping change orders, or submitting incomplete Application for Payment forms.
Bauwise’s dedicated Subcontractor Portal allows Suppliers and Subcontractors to securely access and manage all their commitments from a single interface. Suppliers and Subcontractors can fill in the construction project progress, add additional works, submit Applications for Payment and send them for the main contractor’s approval.
Approved Applications for Payment update commitments, change orders, and Estimate at Completion (EAC) in real time — keeping financial reporting, invoicing, and budget management in sync.
Managing €10B+ in Construction Budgets with Bauwise
Allocate budget based on construction stages or buildings. Track Forecast to Complete (FTC) and Estimate at Completion (EAC). Control budgets through versions and approval locks. Forecast profitability, manage accruals, and sync financial data with integrated accounting or ERP software.
Automate purchase invoice processing with AI-powered data extraction, pre-defined approval workflows and unique invoice allocations. Link invoices directly to purchase orders (PO), contracts or Applications for Payments (AfPs). Manage consolidated invoices for multiple projects between different teams. Meet governance standards, and comply with internal financial policies.
Track, review, and approve construction project scope changes. Submit change order requests with attachments, automatically calculate their impact on project cost, and adjust budgets upon approval. Maintain versioned audit trails and status tracking to ensure compliance, transparency, and project continuity.
We’ve got your questions covered. If you can’t find the answer you’re looking for below, feel free to contact us.
Yes. In construction, the terms ‘Applications for Payment’ and ‘Payment Applications,’ also referred to as ‘Pay Apps,’ are often used interchangeably and all describe the same process — progress claims submitted by contractors or subcontractors to request payment for work completed during a specific period. The terminology varies depending on regional standards, contract type, or company preference, but the underlying meaning and purpose remain the same.
In short, invoices record straightforward transactions, while ‘Applications for Payment’ track ongoing project progress and ensure payments align with contract performance.
A ‘purchase invoice’ and an ‘Application for Payment’ both request payment, but they serve different purposes. Invoices are widely used across industries to bill for products or services, typically listing items, quantities, rates, and the total due. By contrast, ‘Applications for Payment’ — also called ‘progress claims’ or ‘Pay Apps’ — are specific to construction. They capture the contract value, approved changes, work completed to date, stored materials, current payment due, and any retainage withheld. Unlike invoices, which may be one-time or recurring, Applications for Payment are usually submitted at set intervals (e.g., monthly) and require supporting documentation such as timesheets or delivery notes. They also undergo a more rigorous approval process involving project managers, owners, and sometimes lenders.
‘Change order’ is the term most commonly used in North America, while ‘variation’ is more widely used in the UK, Australia, and other regions. Change orders and variations describe the same concept — modifications to the original scope of work, contract value, or schedule. Both require formal approval and documentation to ensure that adjustments to cost, time, or deliverables are properly recorded and managed within the project contract.
Retentions and back charges directly influence the value of an Application for Payment. Retentions (or retainage) are a portion of the contract sum withheld from each payment to ensure project completion and quality; they reduce the amount approved for immediate payment but are released once contractual milestones or final completion are achieved. Back charges are deductions applied when the contractor incurs costs due to subcontractor errors, delays, or incomplete work. Both adjustments are recorded within the Application for Payment to ensure that the requested amount accurately reflects the project’s financial status.
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