.svg)
Percentage-of-Completion
What is percentage of completion?
Percentage of completion (POC) is a metric that represents the proportion of work completed on a construction project at a given point in time. It is expressed as a percentage of the total contracted work. The POC is important to subcontractor workflows for several reasons:
- Payment schedules: Most construction contracts stipulate that subcontractors receive payment based on the percentage of work completed rather than a lump sum payment at the end of the project. The POC determines the amount of payment that a subcontractor can request from the general contractor (GC) or the project owner for the work performed during a specific billing period.
- Cash flow management: Subcontractors rely on progress payments to maintain a healthy cash flow and cover expenses such as labor, materials, and equipment. The POC directly impacts the timing and amount of progress payments received, allowing subcontractors to plan and manage their financial resources effectively.
- Project monitoring and control: Tracking the POC helps subcontractors monitor their progress against the project schedule and budget. It enables them to identify potential delays or cost overruns early on, allowing for prompt corrective actions.
- Dispute resolution: In the event of disputes or claims related to payment or project delays, POC documentation can serve as evidence to support the subcontractor's position and substantiate their claims for outstanding payments or compensation.
- Resource allocation: By monitoring the POC, subcontractors can better plan and allocate their resources (labor, materials, equipment, etc.) across multiple projects, ensuring efficient utilization and avoiding resource conflicts or shortages.
- Project closeout: The POC is crucial during the project closeout phase, as it helps determine the final payment due to the subcontractor and ensures that all work has been completed according to the contract terms.
Overall, POC serves as a versatile tool throughout the entire project lifecycle, from initial payment requests to final closeout. And with Siteline, managing POC workflows becomes effortless. Siteline makes progress billing a cinch by:
- Generating custom pay applications with real-time POC calculations
- Offering intuitive dashboards for clear financial visualization and decision-making
- Integrating with GC payment portals for accurate, timely pay application submissions
- Centralizing all documentation for enhanced collaboration and communication
Book a demo today to experience how Siteline can empower your team to make informed decisions, maintain a steady cash flow, and ensure successful project closeouts.
Trusted by trade contractors across the country
Other construction terms
What is a Request for Proposal (RFP)?
A Request for Proposal (RFP) within the construction industry is a comprehensive document that outlines the specifics about a particular construction project. It's a call to bidders, helping interested contractors and construction firms understand the project details, timelines, expectations, and criteria for selecting the winning bid. An RFP in the construction industry typically includes information such as project scope, schedule, required materials, budget, and other relevant factors. It acts as a formal invitation, allowing companies to bid on the project by proposing a plan that meets or exceeds the listed requirements. This inherently ensures competition, dedication towards the job and best value for money for the project owner.
What is a draw request?
A draw request (or construction draw) is a formal demand for payment submitted by a contractor or subcontractor to a lender, project owner, or general contractor for work completed during a specific phase of a project.
Submitted periodically alongside a schedule of values, a draw request details completed labor, materials installed, and stored items. Once submitted, it typically triggers a bank draw inspection to verify on-site progress before funds are released, ensuring project financing directly aligns with actual work completed.
How Siteline Helps:
Siteline accelerates the entire draw request workflow. Trade contractors can quickly assemble accurate pay applications, compile required backup documentation, and collect lien waivers in one place so draw requests get approved and paid without administrative back-and-forth.
What is a Claim?
In the construction industry, a claim refers to a request or demand for compensation or remediation rights. Such claims often emerge for varying reasons, including unexpected project situations, changes in project scope, unforeseen conditions, or disputes over contract interpretations. For instance, if a construction team encounters an unexpected geological impediment on a site, delaying the project, they might file a claim to recover the costs caused by this delay. These claims are typically addressed in detail within the terms and conditions of construction contracts and might have to be resolved in court or through arbitration if the two parties cannot reach an agreement. It is imperative for every party involved in any construction project to be aware of potential claims to understand their rights and obligations. Therefore, effective claim management is key to successful construction project execution.
Ready to end the fire drill and get paid faster?
