CCMS can calculate and manage retainage. This section describes how retainage is calculated and maintained.  

The following retainage settings are defined at the Item Set level:

• Include Retainage – If true, retainage is processed.

• Retainage Cap – A percentage of the current contract value which should be held as retainage. As Change Orders are added which increases the Contract value the total amount to retain increases.

• Withhold from Pay – A percentage of each of the contractor's pay to withhold for retainage.

Note: The CCMS configuration variable RETAINAGE_INCLUDE_STOMAT is used to establish the progress payment costs to include when calculating the amount to withhold. For the progress payment        period, these costs are defined as follows.

• FALSE - Pay Item costs        (default)
• TRUE – Pay Item costs + (Material Stored costs - Stored Material Used)

As progress payments are processed, retainage costs will continue to be taken at the withholding rate until the total amount retained equals the current retainage cap value has been met. Should the retainage cap value increase (i.e. via an increase from a change order), additional retainage will be withheld.  

Retainage may be manually released at any time up to the amount retained to date.

Next Topic: Progress Payment User Interface