Retention Types

Retention Types are used to determine how retention will be calculated for either a subcontractor invoice or a Client Progress Claim. They contain the parameters to be applied to the actual contract details. The are 2 limiting options, retention can be based on a percentage of the contract or a dollar value. Most retention types are based on a percentage. There can be up to 5 steps in the calculation with each step calculating the retention held up to that limit.

In the 2 step example in the screen image below, 10% is applied to a limit of 50% of the contract value and then 5% is applied from the 50% point on. These calculations are made each time a new invoice is recorded so if the calculation method is amended, everything will be rectified at the next claim. Once the calculation has been made, it is offset against any Bank Guarantee recorded on the contract before the actual retention is deducted. Because the calculation is made on every invoice, if a bank guarantee is entered after one or a number of claims have been process, the required retention is calculated correctly on the next invoice.