Document Compliance Payment Holds Overview

Use compliance enforcement options when setting up document requirements to apply payment holds. If a required document uses the Withhold Payment enforcement setting, the application automatically holds payments from non-compliant Subcontractors. The application applies holds when you approve an invoice.

Standard Compliance Payment Holds

If a Standard requirement is marked as Not Received in the current or previous draws, the application applies a payment hold when you approve an invoice. If a document expires, the Subcontractor is considered non-compliant based on the Expiration Tracking setting.

The Track Expiration Against Period To Date option holds draw payments when the Period To Date is after the document expires. Payments for draws with Period To Dates before the document expiration will not be held.
The Track Expiration Against Current Date option holds all payments as soon as a document expires. 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 draws, the application applies a payment hold when the invoice is approved.

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

Conditional Compliance Payment Holds

If a Conditional requirement is marked as Not Received, the application applies a payment hold as soon as a subcontract meets a preset condition.

Payments remain on hold for the current and all future invoices until document compliance is updated.
The application 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 organizations. Subcontractor 2 receives a change order, 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 a Payment Hold

Use the Edit Document Status page to release a hold when you receive the document.
Use the Manage Payments page to override a payment hold.
Notes:
- If your organization 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.
- If you override a compliance payment hold, the application will no longer automatically place holds for that draw. If a hold must be placed after the override, create a new payment hold on the Manage Payments page.
See the Edit Payment Status topic for instructions on creating or overriding a payment hold.

Next: Legal Document Download