Payment Hold Settings

Variation

Require Variation Compliance tick box

Choose this setting to automatically place holds on payments to any Subcontractor out of compliance with allocated variations. Contact your Textura implementation team if you think you need to use this setting.

Payment Application

Track negative payment applications and apply contract-wide payment holds tick box

Choose this setting to track negative payment applications and hold payments. All payments on the contact are automatically placed on hold if a negative value payment application is submitted by a Subcontractor. The Project Manager and Disburser can coordinate to identify positive payment applications that can be used to balance negative amounts by creating split payments. You must release the holds manually from the Edit Payment Status page. You can either release the hold on the negative payment application to simultaneously release all holds on the contract, or release each individual hold on a positive payment application.

Track Overbilled Contracts tick box

Choose this setting to automatically place holds on payments to any Subcontractor with a billed amount greater than the current contract value.

Track payment applications with Stored Materials tick box

Choose this setting to automatically place holds on payments to any Subcontractor with billed stored materials.

Track Split Payments tick box

Choose this setting to automatically place holds on payments to any Prime Subcontractor who has a split payment. A Project Manager must manually release payment application Holds on the Edit Payment Status page.

Track Failed payment application Exports

Choose this setting to place automatic holds on all payment applications that are exported. The hold is automatically released when an export receipt is received from the ERP. This setting is available to Main Contractors for projects that have ERP receipts enabled. Main Contractors can use the Edit Payment Status page to manually release this hold. This setting is displayed only if it has been enabled by your Textura administrator.

VAT Invoice

Prior Period

Hold Payment for missing prior period VAT Invoices tick box

Choose this setting to require the system to place a hold on payments for any Subcontractor missing Sub-Tier Subcontractor and Material Supplier VAT Invoices from a previous period.

Automatically apply a payment hold when sub-tier prior period payment application doesn't have a VAT Invoice

Off by default. Select this option to automatically apply payment holds when a Prime Subcontractor is missing a Sub-Tier VAT Invoice from a previous period. When you do not activate this setting, you will need to manually apply VAT Invoice holds from the Manage VAT Invoices page.

Current Period

Hold Payment for missing current VAT Invoices tick box

Select this setting to require the system to place a hold on payments for missing Sub-Tier VAT Invoices.

Sub-Tier VAT Invoice Requirements

Select from four options:

Automatically apply a payment hold when sub-tier current period payment application doesn't have a VAT Invoice

Off by default. Select this option to automatically apply payment holds when a Prime Subcontractor is missing a Sub-Tier VAT Invoice from the current period based on the Sub-Tier VAT Invoice Option you selected. When you do not activate this setting, you will need to manually apply VAT Invoice holds from the Manage VAT Invoices page.

Enabling Automated Holds:

You can enable the Automatically apply a payment hold setting when creating or modifying a project.

When this setting is enabled, the system reviews all open periods related to the project and automatically places a hold on Subcontractors with missing Sub-Tier VAT invoices. Note, this process runs in the background and can take up to a minute complete.

Sub-Tiers and Subcontractors with missing VAT invoices are placed on hold, indicated by a RED status in the MC Approval column on the Manage VAT invoices page. Any future payment applications submitted without the required VAT invoices or updates indicating a rejection of previously submitted VAT invoice will automatically trigger holds for the affected Sub-Tiers.

Compliance Managers can review the VAT invoice status and applied holds from the Manage VAT invoices, Manage VAT invoices by Period, and View VAT invoices Status pages. Compliance Managers can coordinate with the Disburser to release the payments.