What to include
- Who and what: your company, the main contractor, the project, the subcontract reference and the application number.
- The period: the valuation date the application is made up to, and the date you send it. Send it by the date in your subcontract's payment terms.
- The cumulative valuation, line by line against the contract sum analysis: each item's value, the percentage complete and the value to date. Applications are cumulative: each one values everything done so far, not just this month.
- Variations, each with its instruction reference and value, and materials on or off site and dayworks where the subcontract allows them.
- The deductions: retention at the agreed rate, any main contractor's discount, and the total previously certified.
- The sum applied for and the basis on which it is calculated. If your subcontract treats the application as the payee's notice, this is the sum that becomes payable if no payment notice or pay less notice follows.
- VAT: most subcontract work is under the domestic reverse charge, so say so rather than adding VAT.
A layout you can copy
| Ref | Description | Value | % complete | Value to date | Previous | This period |
|---|---|---|---|---|---|---|
| 01 | [Contract sum analysis item] | £[ ] | [ ]% | £[ ] | £[ ] | £[ ] |
| V01 | [Variation, instruction reference] | £[ ] | [ ]% | £[ ] | £[ ] | £[ ] |
Gross valuation to date £[ ]
Less retention at [ ]% £[ ]
Less main contractor's discount at [ ]% £[ ]
Net valuation to date £[ ]
Less previously certified £[ ]
Sum applied for £[ ] (domestic reverse charge applies: the customer accounts for the VAT)
Making it count
- Send it on time, to the right person, by the method your subcontract requires, and keep evidence of when it was sent.
- Know your dates. The due date, the payment notice deadline, the pay less deadline and the final date for payment all follow from your terms. If no payment notice arrives in time, the sum you applied for may become the notified sum; if the contract does not treat the application as a payee's notice, you can give one.
- Keep the evidence: instructions, quotes and dated photos for every variation and every percentage you claim.
This page explains the general position under the Housing Grants, Construction and Regeneration Act 1996. It is not legal advice: check your subcontract.
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