Retention

The Retention functionality enables the main contractor to retain a percentage or amount of each payment to a subcontractor, to ensure the subcontractor performs the work up to the expected level of quality. This amount can be paid after the defect liability period is completed or when the subcontractor requests for releasing the retention amount. The subcontractor can request for full amount to be released at one go or can ask for the same in installments, mainly for cash flow management.

When the commercial department of the main contractor receives the request from the subcontractor to pay (a part of) the retention amount, the request is registered and verified. The main contractor checks if there is any defect or complaint against the work performed by the subcontractor. The main contractor can approve the complete amount requested or only a part of the requested amount based on the assessment of the work done. Also, the main contractor can negotiate a certain discount on the agreed amount when the retention amount is released earlier than the defect liability period.

The retained amount must be released to the subcontractor using an Application for Payment or manually, after receiving the approval. The actual payment is maintained based on the Certificate of Payment.