Several of our contracts require Variable Rates of Retainage, how does Construction Application for Payment Solution handle Variable Retainage rates?
We've worked very hard to make Construction Application for Payment Solution accommodate various billing needs; including how it handles contracts where the retainage can vary.
Construction Application for Payment Solution can handle varying retainage rates, in the following circumstances:
- Retainage rates vary on individual line items.
- Retainage rates will vary on different phases or sections of the contract - for example 5% on Division I and 10% on Division II.
- Retainage rates change at different milestones on the project - 10% retainage until the project is 50% complete, then it drops to 5%.
- Retainage shown in section 5 of the Application for Payment can reflect retainage just for this application.
- Retainage shown in section 5 of the Application for Payment can reflect retainage as an accumulating balance.
- Retainage in Column I on the Continuation Sheet can be displayed as a percentage or a dollar amount - 10% or the dollar amount that represents 10%.
You get to choose on a job-by-job basis.