About Direct Sub-Tier Payments with Procore Pay

Direct Sub-Tier Payments is designed to help streamline the billing process by allowing General Contractors (GCs) to pay suppliers or sub-tier contractors via a digital alternative to manual joint checks. While subcontractors provide the actual authorization, GCs should understand how this status-driven process impacts disbursements.

• Feature Activation: Both the General Contractor and the Direct Sub-tier Payments features must be enabled for the project.

• Subcontractor-Led Authorization: The person providing the authorization must be listed as an Invoice Contact on the subcontractor's side. GCs do not authorize these payments themselves but monitor the status.

• EIN Verification: To help verify that the correct entity receives funds, the subcontractor must confirm the sub-tier’s Employer Identification Number (EIN).

  • This confirmation is required only once per sub-tier on each commitment.

  • Funds cannot be disbursed through Procore Pay until this EIN is confirmed.

  • If a subcontractor encounters an error when inputting the EIN, they are directed to contact the General Contractor to resolve the discrepancy.

• Authorization Accountability: GCs can see who authorized the payment and when it occurred within the system.

• Joint Check Marking: For this process to begin, the GC must mark a sub-tier on the current invoice as a recipient of a joint check.

Authorization is tied strictly to the specific dollar amount listed on the sub-tier’s Lien Waiver.

• Automatic Voiding: If a billed amount is modified due to a dispute or correction, any previous authorization is automatically voided.

• Re-Authorization Requirement: Any new or adjusted amounts must be re-authorized by the subcontractor before Procore Pay can process the payment.

• Missing Amounts: If the "Amount Billed This Invoice" is empty, an amount must be entered while requesting or uploading the lien waiver to trigger the authorization step.