Contract Billing Line

When you set up a retainage rule for a contract billing line, the rule applies only to that billing line.

The system does not calculate retainage for draw or rated-draw billing lines. In addition, the system does not include the schedule of values for draw or rated-draw billing lines in the retainage calculations.

Note:

When a billing line is exempt from the retainage rule that applies to a change order, you must assign a specific rule for no retainage to the billing line. You can define the retainage rule with the retainage percent as 0 and the percent complete as 100.

In this case, you cannot leave the field for the retainage rule blank for the respective billing line. When the field is blank, the system uses the retainage rule for the change order.

When the system calculates retainage for a contract, it first searches for retainage rules in the billing lines. Next, the system searches for retainage rules on the change orders that are related to the contract. Finally, the system searches for a retainage rule on the contract.

Note: If, after you have run the Create A/R Entries program (R48199), you add a retainage rule to the change order of a contract, only the base contract reflects the retainage when you run the Create A/R Entries program again. You must use the Batch Review program (P48221) to manually update the retainage for each billing line in the change order.