What is a Subcontractor (SC)?

A G702 is a document form used in the construction industry known as the Application and Certificate for Payment. It is issued by the American Institute of Architects (AIA) and is used by contractors to apply for payment for the work completed and materials supplied on a project. It details the contractor's progress on the project, summarizing the total project to date, change orders, previous payments, and the current payment due. The form needs to be signed by the contractor, the architect, and the owner, certifying that the work has been completed and payment is deserved.

Uninstalled materials refer to construction materials that have been purchased but are yet to be put in place or installed in a construction project. They are typically stored on-site or at a secure location and are accounted for in a contractor's Work-In-Progress report. These materials may include items like bricks, steel, concrete, wood, electrical wiring, piping, insulation, and fixtures. It is crucial for project managers to properly track and manage these materials as they represent a significant investment and, if misplaced, lost, or damaged, could lead to costly delays and overruns in the project. Their handling requires proper planning to ensure safe storage, timely installation, and effective use in the construction process.

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.