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Procore

Set or Release Retainage on an Owner Invoice

 Note
The steps below describe how to release retainage on an owner invoice with the Prime Contracts tool. For companies using the project's Invoicing tool (see Invoicing), users with 'Admin' permission on the Prime Contracts tool can also perform this task with the Invoicing tool. For details, see Invoicing: Set or Release Retainage on an Owner Invoice

Objective

To set or release retainage for line items on an owner invoice with the Prime Contracts tool. 

Background

In Procore, the term retainge refers to the practice of withholding of a portion of a contract amount until the work is deemed satisfactorily complete. The withheld amount is specified in an agreement between the contracting party (the party paying for the work) and a contracted party (the person or company performing the work).  A common practice is to withhold 5-10% of a contract's total value until a milestone is reached. Then, the withheld amount can be released as a progress payment. When work is substantially complete, the withheld amount can be released as a final payment. 

You can use the steps below to:

  • Set the Retainage Amount. Enter a percentage to calculate the withholding amount. This percentage will be applied to all of the line items on the invoice. For example, enter 10% to withhold to withhold 10% on each invoice line item. 
  • Release the Retainage Amount. Enter a percentage to calculate the amount to release on the invoice. This moves the calculated amount from the 'Currently Retained' column to the 'Released this Period' column in the prime contract. You can adjust this amount to perform a partial or full release as follows: 
    • A partial release indicates an an amount is being withheld. For example, you would enter 50% if you are halfway through the project and your invoice is for a progress payment.
    • A final release means you are releasing the full amount and retainage is no longer being withheld. For example,  you would enter 100% after all of a project's contractual obligations are substantially complete and your invoice is for a final payment.

Things to Consider

  • Required User Permission:
    • 'Admin' on the project's Prime Contracts tool. 

Steps

  1. Navigate to the project's Prime Contracts tool.
  2. Click the Invoices tab. 
  3. Locate the owner invoice that you want to work with.
  4. Click the Detail tab.
  5. Click the Edit button. 
  6. Choose one of the following:

Set Retainage on All Line Items

  1. Under Set Retainage on All Line Items, do the following:
    set-retainage.png
  2. Enter the percentage to withhold in the Work Completed box. 
  3. Click Set.
  4. Enter the percentage to withhold in the Materials Stored box. 
  5. Click Set.

Release Retainage on All Line Items

  1. Under Release Retainage on All Line Items,  do the following:
    release-retainage.png
  2. Enter the percentage to release in the Work Completed box. 
  3. Click Release