If your company executes large and long-term projects, you will need to manage the retainage. When reporting the finished work to the customer, the construction company invoices the full scope of the activities, but a part of that amount should be kept as retainage. 4Construction offers a tool that will help you manage retainage easily. The functionality allows you to identify and calculate the retained amount. All you have to do is to set up the retainage percentage so that the system can do the calculation. After that, the result is reflected in the system by splitting the invoice into several due dates. The retainage amount may vary as the volume of work in each reporting period is typically different.
Retainage can be calculated during the invoice proposal generation. It will be based on the completed construction works registered in the system for the period.
Retainage percentage can be set at project level.
Splitting an invoice amount into several due dates helps you track the retainage amounts separately.
Retained amounts included in the IPC are placed in separate sections according to the FIDIC rules.
The retainage is presented separately in the customer aging report following the due dates.