Video 20 of 26 ยท Move the Money

Subbie Claims: Inbox to Payment Schedule

How a subbie's claim comes in, how KAI turns it into a claim and a draft payment schedule, and how you certify, serve and release retention

← Process Supplier InvoicesRetentions and Security →
Watch the Subbie Claims: Inbox to Payment Schedule video
Watch the Subbie Claims: Inbox to Payment Schedule video on YouTube
Watch the video walkthroughhttps://youtu.be/HVsh_Y_77c8

In this walkthrough, you'll follow a subcontractor's progress claim through the Deep Space web app, from the moment it lands in your inbox to a payment schedule you can serve. We'll cover the Invoice Inbox, how KAI reads and matches the claim, the Invoice Register, the auto-drafted payment schedule, certifying it, sending it, and retention release.
The full series: 26 videos in Builder's Wheel order (Win, Set Up, Build, Move the Money, Govern)
  1. Build an Estimate and Proposal Win
  2. Multi-Trade Tender Win
  3. Set Up Your Workspace Set Up
  4. Add Users and Give Them Access Set Up
  5. Company Settings: Get Your Documents Ready Set Up
  6. Connect Xero and Map Your Cost Codes Set Up
  7. Folder Templates and Project Documents Set Up
  8. Document Templates vs Contract Templates Set Up
  9. Email Templates and Sending Documents Set Up
  10. Head Contract Setup Set Up
  11. Build Your Programme Set Up
  12. Subcontracts: Award to Executed Set Up
  13. DS Site: Invites, Inductions and Site Sign-on Build
  14. Drawings to Site and Subbies Build
  15. Run Your Programme on Site Build
  16. RFIs, Notices and the Project Inbox Build
  17. Inbox to Xero: How the Money Flows Move the Money
  18. Purchase Orders Move the Money
  19. Process Supplier Invoices Move the Money
  20. Subbie Claims: Inbox to Payment Schedule Move the Money
  21. Retentions and Security Move the Money
  22. Variations, End to End Move the Money
  23. Provisional Sums: Allowances, Drawdowns and Over-runs Move the Money
  24. Progress Claims to Your Client Move the Money
  25. Budget and Forecasting Govern
  26. Delegation of Authority Govern

How claims come in

Most claims arrive by email. In Email Integration, Shared Email, connect one mailbox for the whole workspace, ideally a
Most claims arrive by email. In Email Integration, Shared Email, connect one mailbox for the whole workspace, ideally a dedicated address like invoices at your company. Ask your subbies to send their claims there, with the claim as a PDF attachment.
Got a claim some other way? In the Invoice Register, click Upload PDF. Drop in the file, add a subject, and click Upload
Got a claim some other way? In the Invoice Register, click Upload PDF. Drop in the file, add a subject, and click Upload.
Either way, it lands in the Invoice Inbox, under Commercial. A new claim shows Pending Kai Processing.
Either way, it lands in the Invoice Inbox, under Commercial. A new claim shows Pending Kai Processing.

KAI reads the claim

KAI processes claims as they arrive. If one is still waiting, open it and click Kai Process.
KAI processes claims as they arrive. If one is still waiting, open it and click Kai Process.
KAI reads the claim: the invoice number, dates, amounts ex and inc GST, payment terms, and every line. The confidence sc
KAI reads the claim: the invoice number, dates, amounts ex and inc GST, payment terms, and every line. The confidence score tells you how sure it is.
Then it matches the claim to the subcontract. It creates the subcontract claim as Submitted, works out the schedule due
Then it matches the claim to the subcontract. It creates the subcontract claim as Submitted, works out the schedule due date, and matches each line to the schedule of values. The supplier identity check compares the NZBN and bank details on the claim, so a changed bank account doesn't slip through.

The Invoice Register

Matched claims move to the Invoice Register. You'll find this one under Pushed to Schedule.
Matched claims move to the Invoice Register. You'll find this one under Pushed to Schedule.
Open it. The linked bar shows the whole chain: the subcontract, the claim KAI created, and a draft payment schedule. Cli
Open it. The linked bar shows the whole chain: the subcontract, the claim KAI created, and a draft payment schedule. Click any of them to jump straight there.
If KAI picked the wrong contract, click Change match. Choose Supplier Invoice for a purchase order, or Subcontractor Cla
If KAI picked the wrong contract, click Change match. Choose Supplier Invoice for a purchase order, or Subcontractor Claim for a subcontract, then pick the right record and save.
Scroll down to Line Item Matching. Fix an amount, or untick a line that isn't part of this claim, then click Save Claim
Scroll down to Line Item Matching. Fix an amount, or untick a line that isn't part of this claim, then click Save Claim Changes. The claim and the payment schedule update together.
Compare with payment schedule puts the claimed and scheduled amount for each line side by side.
Compare with payment schedule puts the claimed and scheduled amount for each line side by side.
Timeline shows every step: uploaded, KAI extracted the details, KAI matched the subcontract, and the claim and draft sch
Timeline shows every step: uploaded, KAI extracted the details, KAI matched the subcontract, and the claim and draft schedule were created.

Certify the draft schedule

Open the draft from the linked bar, or from Payment Schedules Issued. It's already filled in: the claimed amount, retent
Open the draft from the linked bar, or from Payment Schedules Issued. It's already filled in: the claimed amount, retention, net payable, and a link back to the source invoice.
Click Edit. Check the statutory due date, the deadline to serve the schedule, and the payment due date. The payment due
Click Edit. Check the statutory due date, the deadline to serve the schedule, and the payment due date. The payment due date is sent to Xero as the bill due date.
Each line starts at what was claimed. Change the certified value where you disagree. Here we certify the bulkheads at tw
Each line starts at what was claimed. Change the certified value where you disagree. Here we certify the bulkheads at twelve hundred, not seventeen twenty. The line is no longer fully agreed, and a reason is required.
Expand the line and pick a situation, like builder-assessed value of work executed. The standard clause fills in. Replac
Expand the line and pick a situation, like builder-assessed value of work executed. The standard clause fills in. Replace the placeholders with real values, add any detail, and click Save Changes.
The schedule now shows what you're paying, what you withheld and why, and retention for the period.
The schedule now shows what you're paying, what you withheld and why, and retention for the period.

Serve the schedule

Payment readiness checks the payment conditions, and that the subcontract is executed. When you're happy, click Generate
Payment readiness checks the payment conditions, and that the subcontract is executed. When you're happy, click Generate and Send Document.
Preview it first. It's served as a payment schedule under section twenty-one of the Construction Contracts Act, with the
Preview it first. It's served as a payment schedule under section twenty-one of the Construction Contracts Act, with the scheduled amount, retention, GST, and your reasons.
Add the subbie's accounts contact, and click Send. Serve it before the statutory due date.
Add the subbie's accounts contact, and click Send. Serve it before the statutory due date.
Payment Schedules Issued tracks every schedule, with its due dates, status and Xero status.
Payment Schedules Issued tracks every schedule, with its due dates, status and Xero status.

Retention release

When retention is due back, click New Retention Release on the claims register. PC release is the final claim, and relea
When retention is due back, click New Retention Release on the claims register. PC release is the final claim, and releases half the retention at practical completion. DLP release pays back the rest at the end of the defects period. It follows the same steps as any claim, and the release can never be more than the retention you hold.

Common questions

Where do subbie claims end up?

Every claim document lands in the Invoice Inbox, then the Invoice Register. The claim itself lives in Progress Claims from Subcontractor, and the schedule in Payment Schedules Issued.

Where do subbie claims end up?
Every claim document lands in the Invoice Inbox, then the Invoice Register. The claim itself lives in Progress Claims from Subcontractor, and the schedule in Payment Schedules Issued.

KAI matched it to the wrong contract, or to a purchase order.

Open it in the Invoice Register and click Change match. Choose the record type, then the right subcontract or order.

KAI matched it to the wrong contract, or to a purchase order.
Open it in the Invoice Register and click Change match. Choose the record type, then the right subcontract or order.

KAI didn't match it, so no claim was created.

Usually the subcontract reference or line items didn't line up. Use Change match, choose Subcontractor Claim, and pick the subcontract yourself.

KAI didn't match it, so no claim was created.
Usually the subcontract reference or line items didn't line up. Use Change match, choose Subcontractor Claim, and pick the subcontract yourself.

KAI read an amount wrong.

Correct it in Line Item Matching and click Save Claim Changes. The claim and payment schedule update together.

KAI read an amount wrong.
Correct it in Line Item Matching and click Save Claim Changes. The claim and payment schedule update together.

Quick reference

Need a hand? Email help@deepspacegroup.ai

Can I enter a claim without an email?

Yes. Use Upload PDF in the Invoice Register so KAI still reads it, or click New Claim on Progress Claims from Subcontractor and key it in.

Can I enter a claim without an email?
Yes. Use Upload PDF in the Invoice Register so KAI still reads it, or click New Claim on Progress Claims from Subcontractor and key it in.

When is my payment schedule due?

Within the time your subcontract allows, and in New Zealand no later than twenty working days after the claim if it's silent. Check the statutory due date before you send.

When is my payment schedule due?
Within the time your subcontract allows, and in New Zealand no later than twenty working days after the claim if it's silent. Check the statutory due date before you send.

Why is the payment due date different from the schedule due date?

The schedule due date is your deadline to respond to the claim. The payment due date comes from your payment terms, and is the bill due date in Xero.

Why is the payment due date different from the schedule due date?
The schedule due date is your deadline to respond to the claim. The payment due date comes from your payment terms, and is the bill due date in Xero.

How do I pay less than claimed?

Lower the certified value on the line, and record the situation and reason. The reason prints on the schedule and is kept word for word for your audit trail.

How do I pay less than claimed?
Lower the certified value on the line, and record the situation and reason. The reason prints on the schedule and is kept word for word for your audit trail.

Quick reference

Need a hand? Email help@deepspacegroup.ai

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