Redwood: Negotiate Retainage for Services

You can now add retainage terms in an RFQ and allow suppliers to negotiate these terms using an enhanced Redwood experience. The terms include retainage rate and maximum retainage amount. Retainage rate is the percentage of the payment that will be withheld before releasing payments to the contractor. Maximum retainage amount is the maximum amount that can be withheld.

You can also specify retainage terms when adding lines using the spreadsheet. Suppliers can negotiate retainage terms when creating a response in the UI and spreadsheet.

You can also compare the retainage terms proposed by suppliers side by side during award analysis. When a complex work purchase order is generated after award, the negotiated values of the retainage rate and maximum retainage amount from the awarded supplier's response are passed on to the purchase order.

Add Retainage Terms

Allow Suppliers to Negotiate Retainage Terms

Minimize risk by communicating retainage requirements to potential suppliers in advance during negotiations for complex work projects. Consider suppliers' proposed retainage terms during award analysis to make the best award decision for your project. The agreed on retainage terms are passed on to downstream transactions to ensure compliance.

Steps to enable and configure

To create a retainage enabled RFQ, you must use a template that has retainage enabled on the purchase order outcome document style. Use the Manage Document Styles task under the Procurement Offering to enable retainage for existing or newly created document styles.

Tips and considerations

Retainage terms are carried over when you create an amendment or a new round.

Key resources

For details on creating and editing purchase orders with retainage terms, you can refer to Redwood: Create and Edit Purchase Orders with Retainage Terms

Access requirements

• Users who are assigned a configured job role that contains this privilege are able to set up this feature:
  • Manage Purchasing Document Style (PO_MANAGE_PURCHASING_DOCUMENT_STYLE_PRIV)
• No specific privileges are needed to create negotiations or respond to negotiations with retainage terms.