Automatic Retainage Reduction
You can set a project's retainage rate to automatically reduce when certain project milestones are achieved.
Sliding Scale Retainage is a construction industry practice to balance payment protection for contractors. Instead of a fixed percentage of funds being withheld as retainage throughout the entire duration of the project, this approach involves reducing the retainage rate when a specific project milestone is achieved.
In Trimble Pay, Automatic Retainage Reduction accomplishes this.
Automatic Retainage Field Values
- Navigate to a project contract.
- Select Retainage.
The Automatic Retainage Rules pane is centered on the page.
| Field | Definition |
|---|---|
| Starting rate | The standard retainage rate applied to all invoices until the the Threshold is met, that is, until the Balance to threshold value is $0. |
| Trigger rate | The percentage of the entire contract value which must already be withheld in order for the Starting rate to expire and for the Finishing rate to activate. |
| Finishing rate | The retainage rate in effect after the Threshold has been withheld, that is, once the Balance to threshold is $0. |
| Threshold | The dollar amount which must already be withheld from already-submitted invoices that will trigger the automatic reduction in the retainage rate being held from future invoices. |
| Balance to threshold | The dollar amount yet to be withheld before the Starting rate expires and the Finishing rate is activated. |