Retention Codes

Owned by Daniel Akers
Last updated: Nov 05, 2024 by Bao TRINH
3 min read

Overview:

Retentions are used in Workbench in both the Contract Reports and Subcontracts modules as a way to hold payments to the side for a specified time frame, generally after a maintenance or warranty period has lapsed. You can set up multiple codes for different client requirements, and some code types can be used for both Contract Reports and Subcontracts. If particular projects are not meant to hold retentions, a blank code with no retention to hold should be set up for use on those projects.

The following Control Parameters affect retentions:

  • Retention Activity Code: Retentions on Subcontract Claims are created using this Activity.

  • Retention Job: This is the Retention control Job. Retentions and retention releases on both Contract Reports and Subcontracts are recorded against this job.

  • Retention Sales Code: Retentions on Contract Claims are created using this sales code.

  • Retention Work Centre: The Work Centre against which Retentions are applied in Contract Cashflow.

Screen Guide:

Initial List:

By default, only active retention codes are shown. Click + New Retention to create a new code, or click on the Code field of an existing one you would like to edit.



Create/Edit Window:

  • Code is a unique identifier for the retention and is limited to five characters.

  • Inactive marks the retention as unavailable for future use, but existing assignment will need to be manually redone.

  • Description is the longer descriptive text for the retention.

  • Details can contain extended explanation of the use of this retention code.
    If the Subcontract has a Retention Trust Account, this will be displayed in the Retention Balance Statements sent to subcontractors.

  • Type can be one of the following, and will change the display of the bottom section:

    • Step by Value Type:

This type can be used for both Contract and Subcontract Retentions. Up to four Steps can be used in the retention calculation, each with their own Cut Off Value and corresponding Retention %.

The following example illustrates the above screenshot:

Claim #

Claim Value

Step 1 Basis

Step 1 Retention

Step 2 Basis

Step 2 Retention

Step 3 Basis

Step 3 Retention

Total Retention

Claim #

Claim Value

Step 1 Basis

Step 1 Retention

Step 2 Basis

Step 2 Retention

Step 3 Basis

Step 3 Retention

Total Retention

1

$50,000

10% of 50,000

5,000

 

 

 

 

5,000

2

$300,000

 

 

5% of 300,000

15,000

 

 

20,000

3

$600,000

 

 

5% of 50,000

2,500

2.5% of 550,000

13,750

36,250

4

$50,000

 

 

 

 

2.5% of 50,000

1,250

37,500

5

$100,000 - No retentions apply after claimed total has reached 1,000,000

 

 

 

 

 

 

37,500

 

 

  • Step by Percent (Estimate Type):

  • This type can be used for both Contract and Subcontract Retentions, and the Schedule Basis options can be marked for inclusion or ignored. For example, if only Original is ticked, the calculation will only take into account Original Contract Job Budget types, but if Approved Variations are selected, the corresponding budget types will be included in the retention calculation.

  • The Max Value Retention percentage indicates what the ceiling is for retention amounts. For example, if 5% is entered, and the contract value is $100,000, a maximum of $5,000 will be retained.

  • Retention Step is the percentage of each claim that should be retained, up to the Max Value Retention value.

  • Step by Percent (Schedule Type):

    • This type is identical to the Estimate Type in terms of the Schedule Basis options, but can only be used for Contract retentions since Subcontracts do not have Schedules.

Next Steps:

Once set up, retentions can be applied in Contract Settings and Subcontract Settings respectively.



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