Applying Payment Holds for Document Compliance

One way to enforce document compliance on the TPM is to apply payment holds.

Choose compliance enforcement when you set up document requirements.

See Creating Standard Legal Document Requirements, Creating Periodic Legal Document Requirements, and Creating Conditional Legal Document Requirements

If a required document uses the Withhold Payment enforcement setting, the application automatically holds payments from non-compliant Subcontractors. Payment holds are applied when you approve a Payment Application.

Standard Compliance Payment Holds

If a standard requirement is marked as Not Received in the current or previous periods, TPM applies a payment hold when you approve a Payment Application. 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.
Note: 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.
Note: If a document does not expire, the requirement has a Do Not Track Expiration setting.

Periodic Compliance Payment Holds

If a Periodic requirement is marked as Not Received in the current or previous periods, the system applies a payment hold when you approve the Payment Application.

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, the system applies a payment hold as soon as a subcontract meets a preset condition.

Payments remain on hold for the current and all future Payment Applications until document compliance is updated.
The system automatically removes holds if a subcontract no longer meets a condition.
For Example: Subcontractors must submit documents when their subcontracts are at 50% work complete. Subcontractor 1 completed 52% of the work on a project and Subcontractor 2 completed 50%. The system places a hold on both organisations. Subcontractor 2 receives a variation, increasing the contract value by 10%. The system automatically removes the payment hold from Subcontractor 2 because the work completed on a project is no longer at 50%. Subcontractor 1's payment remains on hold.

Release Payment Hold

Use the Edit Document Status page to release a hold when you receive the document.
See Edit Document Status for instructions on updating the document status.
Use the Manage Payments screen to override a payment hold.
Notes:
- 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 page.
- If your organisation has selected the option to require users with the disburser role permission to release project-level document compliance holds, then the Release button on the Edit Payment Status page is displayed only for users with the Disburser role for the project.
  See Edit Payment Status for instructions on creating or overriding a payment hold.

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