Contract Discount Terms Workflow

  1. Create a Discounted Contract.
  2. Create the Work Breakdown (WB).
  3. Create Subcontract.
    • Enter Discount Terms
    • Submit Contract

    Subcontractors accept the discount terms when they confirm their contracts on the system. Once Subcontractors confirm their contracts, the discount terms will be locked. Discounted contracts do not affect usage fees paid by the Subcontractor.

  4. (Optional) Change Discount on an Existing Contract.
  5. Disburse a Discounted Payment

    Before payment is disbursed, the Manage Payments page automatically deducts the discount if the payment application is within the terms.

    • The Manage Payments page will display the discount amount in a Discount column.
    • There is no discount on tax.
      For example: If an invoice amount after retention = £1,000; the Tax = £130; and a 2% discount is in effect for a Discount = £20 (2% * 1,000), then the Payment = £1,110 (£1,000 – £20 + £130).

    Once payment is disbursed, the BACS file is generated net of the discount applied to each contract. Interfaces reflect discounts paid to Subcontractors based on the accounting package.

    • CGC and Spectrum—An extra field in the PMT line item reflects the discount.
    • Timberline—An extra field appears in the invoice record for available discounts.
    • All Others—Payments are sent as net of discount (similar to split payments).

    Note: If a Title Company or Owner is disbursing funds, that organisation is responsible for discounts. The disbursing organisation has the ability to disable all contract discounts on a project from the Project Funding screen.