This is the second part to getting started with self assessed projects on Payapps. If you haven't already, you will first need to create a project before you create a contract.

This article is specifically for subcontractors using Payapps' Self-managed functionality; processing AFPs for counterparties outside of Payapps.

Note: If your client is also using Payapps, you will not have to complete these steps. Instead, wait for an email from your client inviting you to the project that they will have created on their side.

To begin, open your Project and click the Add New Contract button on the right side of the page.

Next, fill in the contract details:

The first field allows you to select your contract role. Select the role ‘Claimant’ which will allow you to self-manage your AFPs.

The second field allows you to add a counterparty organisation. This will be the other company you are working with on the contract. Type in the name of the company and the field will display a drop-down list of existing organisations that you can select.

If the organisation is not listed, you will have the option to add a new organisation:

Note: you can add your own email as the representative email if you’d like the AFP PDFs to be sent to you first for you to forward to your client.

Finally, you can add a name for your contract. This will default to the name of the project, followed by the name of the counterparty, but this can be edited to whatever you like.

Contract Date is the date the contract has been published or has gone live. Proposed Commencement is the start date for the actual works to commence. This determines the start of the AFP period on the claimants first AFP, so If there are retrospective AFPs that will be submitted for previous months, the commencement date can be set to allow for this. Proposed Completion is the date you expect works to conclude. This field is simply for posterity - works can continue beyond this date and it can be updated later if required.

Defect Liability is the number of days that must elapse between practical and final completion before the final portion of retention can be requested by the claimant. enter 0 if you do not wish to enforce a defect liability period.

Next are the retention settings:

In the UK, it's common to have an overall retention rate for contracts. Therefore the retention rate in the Max Retention and Initial Rate fields should be the same for both options.

You may include or exclude contra charges from retention calculations depending on company policy.

The release trigger sets the moment during the contract where the subcontractor has the ability to apply for retention. Note: The retention will be applied and requires assessment and will not automatically be released.

The initial release amount allows you to withhold the percentage of retention until the defect liability period has passed, at which point the subcontractor can apply for the remainder.

All new contracts automatically use the PROJECT DEFAULT application schedule already set up in your project settings. If this subcontractor is working to a different application schedule to the project default, choose the relevant option from the dropdown list and enter your dates.

CIS tax deductions

If your subcontractor is required to provide a split between labour and material costs, click the 'Yes' option. Then choose the relevant 20% registered or 30% unregistered rate. If the rate is 'gross' or this isn't relevant, select 'No'.

Settings

Taxes - VAT

Set the overall VAT rate for the contract using this field. You will also have the ability to exclude specific line items from the VAT calculations.

AFP key dates

This section is vital to ensure that your payment terms are set up correctly for this subcontractor.

You can find more information on AFP key dates here.

AFP submission - instructions

This field provides you with the ability to enter free text which will appear to your subcontractor in the form of a 'Submission Terms' box before they submit their application. This can be used to remind them to perform certain actions before they submit.

Compliance

This section automatically pulls through settings which have been set up at an organisation level. If you're unsure if this is set up correctly, please contact your internal Payapps administrator or the support team.

If there are compliance documents which have been greyed out, this means that they can only be edited or removed by organisation administrators. For more information on compliance documents, click here.

Pressing 'CONTINUE' takes us to the contract breakdown section.

This section allows you to upload your contract breakdown by either entering lines manually or by using the Excel upload function. For a more detailed tutorial, click here.

First, choose whether your contract format is lump sum (percentages and value) or schedule of rates (unit of measure and value).

To use the Excel upload function, choose the format before selecting to download the import template file. Once you've done this, copy and paste your list of agreed contract costs into the template file. You can find more information on this here.

Next, select 'Import Contract Lines by uploading a CSV or Excel file' which allows you to find the file from your computer. Once you have selected the file, click 'Import'.

Once imported, you can amend your contract value. Before publishing, remove the manual entry section at the top to proceed. Once this has been completed you can save the contract at the top right.

If you have any questions or require assistance please do not hesitate to contact support via:

Chat: In app
Phone: 0191 651 1765
Email: support@payapps.com