Set Contract Retention and Securities
For each contract you create you have the option to set the type of security you want to apply. Depending on the type of security you choose it will affect how payment claims are generated and how much is automatically withheld on the claim.
Contract Securities Options Available
Retention
Options 2 & 3 below will affect the claimed amount i.e. retention will be withheld from the claimed amount according to the percentage specified in Set Contract Retention and Securities | Retention Fund
It is recommended that once option 2 or 3 is chosen you do NOT change this setting back to none and then back on again.
If you want to change the amount of retention held, it is best to enable Manual Retention on the Claim form.
Choose from the following options:
| Options | Description |
|---|---|---|
1 | None | No retention is applied to the claim. |
2 | Original Contract Sum | Retention is based on the original contract amount only. |
3 | Adjusted Contract Sum | Retention is based on the original contract amount plus all approved variations. |
When options 2 or 3 are selected you will need to complete the percentages in the Set Contract Retention and Securities | Retention Fund
Bank Guarantee
If the security held is a bank guarantee, tick the bank guarantee check box. Bank Guarantees do not affect the amount claimed against the contract.
Options | Description |
|---|---|
Amount | Enter the bank guarantee amount. |
Practical Completion Release | Enter the percentage released at Practical Completion. |
Final Completion Achieved | Enter the percentage released when Final Completion is achieved. |
Retention Fund
If you selected option 2 or 3 above (Set Contract Retention and Securities | Retention ) then you need to fill in the percentages in the Retention Fund section.
If selected a percentage of payment is withheld from certified claims.
Options | Description |
|---|---|
Retention Per Claim | Enter the percentage to be withheld from each claim. In the example, 10% of each claim is withheld as retention. |
To Max | Enter the maximum retention percentage. In the example, 5% means that once the retention amount totals 5% of the contract amount (option 2) or contract amount plus approved variations (option 3) no more retention will be withheld from further claims. |