SOP Templates > Flooring > Subcontractor Coordination > Subcontractor Payment & Compliance Review

Subcontractor Payment & Compliance Review for Flooring

The Subcontractor Payment & Compliance Review workflow helps flooring contractors manage billing accuracy and compliance in tandem. It covers verifying completed installations against invoices, collecting lien waivers, and validating insurance or licensing documents. Managers review all requirements before approving payments, reducing liability risks and protecting profitability. Subcontractors gain assurance that payments will be timely and consistent, while clients benefit from projects with fewer financial disputes or disruptions. This workflow also reinforces internal accountability with thorough documentation. With it in place, flooring contractors can strengthen professionalism, improve operational control, and deliver projects more reliably while keeping compliance intact.

Receive subcontractor invoice or pay application for current billing period

Confirm invoice matches contract terms, billing cycle, and schedule of values

Verify scope of work billed aligns with actual progress in the field

Check that all approved change orders are reflected and documented

Apply retainage according to subcontract agreement

Review for math accuracy, duplicates, or previously paid items

Confirm receipt of up-to-date insurance certificates (general liability, workers’ comp, etc.)

Collect required lien waivers (conditional or unconditional)

Ensure any required compliance documents are current (safety forms, licenses, certified payroll, etc.)

Confirm subcontractor has submitted all required submittals and RFIs

Review and approve with project manager or financial controller

Log approved payment in accounting system and schedule for release

Notify subcontractor of payment approval or any corrections needed

File invoice, compliance documents, and approvals in subcontractor records

Receive subcontractor invoice or pay application for current billing period

Confirm invoice matches contract terms, billing cycle, and schedule of values

Verify scope of work billed aligns with actual progress in the field

Check that all approved change orders are reflected and documented

Apply retainage according to subcontract agreement

Review for math accuracy, duplicates, or previously paid items

Confirm receipt of up-to-date insurance certificates (general liability, workers’ comp, etc.)

Collect required lien waivers (conditional or unconditional)

Ensure any required compliance documents are current (safety forms, licenses, certified payroll, etc.)

Confirm subcontractor has submitted all required submittals and RFIs

Review and approve with project manager or financial controller

Log approved payment in accounting system and schedule for release

Notify subcontractor of payment approval or any corrections needed

File invoice, compliance documents, and approvals in subcontractor records