Applying Payment Holds for Document Compliance

One way to enforce document compliance is to apply payment holds.

Choose compliance enforcement when you set up document requirements.

See Creating Standard Compliance Requirements, Creating Recurring Compliance Requirements, and Creating Conditional Compliance Requirements.

If a required document uses the Withhold Payment enforcement setting, the system automatically holds payments from non-compliant Subcontractors. Payment holds are applied when a progress claim is approved.

Standard Compliance Payment Holds

If a standard requirement is marked as Not Received in the current or previous periods, the system applies a payment hold when a claim is approved. If a document expires, the Subcontractor is considered non-compliant based on the Expiration Tracking setting.

Track Expiration Against Period To Date holds period payments when the Period To Date is after the document expires. Payments for periods with Period To Dates before the document expiration will not be held.
Track Expiration Against Current Date holds all payments as soon as a document expires. If a document does not expire, the requirement has a Do Not Track Expiration setting.

Recurring Compliance Payment Holds

If a recurring requirement is marked as Not Received in the current or previous periods, the system applies a payment hold when a progress claim is approved.

Payments are not held when a future period status is Not Received
Only periods that fall within the period dates are used to apply payment holds.

Conditional Compliance Payment Holds

If a conditional requirement is marked as Not Received in the current or previous periods, the system applies a payment hold when a progress claim is approved and the condition for the requirement is met.

Release Payment Hold

Use the Edit Document Status page to release a hold when you receive the document
See Edit Compliance Status for instructions on updating the document status.
Use the Manage Payments page to override a payment hold.
Note: If a compliance payment hold is overridden, the system will no longer automatically place holds for that period. If a hold must be placed after the override, create a new payment hold on the Manage Payments period.

See Edit Payment Status for instructions on creating or overriding a payment hold.

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