Retainage Calculation for Change Orders

The system determines the percent complete for a change order by dividing the net amount to date for all billing lines that do not have specific retainage rules at the billing line level by the total of the schedule of values for the billing lines. If the billing line does not have a schedule of values amount, the system uses the net amount to date for the billing line as the schedule of values amount.

Using the percent complete, the system then applies the retainage rule to the net amount to date to derive the total amount of retainage to be withheld for the change order. The system then allocates the current retained amount to each billing line based on the proportion of the billing line to the change order.

Note: If the retainage rule is changed after retainage has been processed, the system adjusts the current retained amount of the change order by subtracting the previously withheld retainage from the total amount of retainage that should be withheld.