How to add retention to subcontracts

How to add retention to subcontracts

Retention can be configured on a subcontract either during its creation or after it’s been created, provided no invoices or payment applications have been submitted yet. Retention ensures that a percentage of each payment is held back until project milestones or final delivery is confirmed. You can choose to apply retention automatically or manage it manually per invoice.

1. Add retention while creating a subcontract

1. Go to your project and open the Subcontracts tab.
2. Click Create new subcontract.
3. Fill in the required fields.
4. Choose one of the following options:
   • Add subcontract retainage:
     • Enter a name for the retention.
     • Add a percentage scheme. This percentage will be automatically applied to all future invoices and payment applications for this subcontract.
   • Manually book retention:
     • Enter a name for the retention.
     • Leave the percentage at 0%. You’ll manually enter the retention percentage each time you process an invoice or payment application.

2. Add retention to an existing subcontract (with no invoices or payment applications)

1. Go to the Subcontracts tab and open the relevant subcontract.
2. Go to the Summary section.
3. Scroll to the Total retention booked line.
4. Choose one of the following:
   • Click Add retainage:
     • Enter a name for the retention.
     • Add a percentage scheme. This will automatically apply to all future invoices and payment applications.
   • Click Manage retention manually:
     • Enter a name for the retention.
     • You’ll need to book retention manually for each invoice or payment application.

Note: You can only add retention to subcontracts that have no invoices or payment applications yet.