holdback

Holdbacks are a contractual condition in which money is withheld until a goal is accomplished, such as work being completed, or deficiencies are corrected. Holdbacks can be applied as a security measure that work is completed satisfactorily. For example, you could apply holdbacks to contractors with whom you have not done extensive business as an assurance that work will be completed according to contract.

The Projects application tracks two specific types of holdbacks:

  • Lien Holdbacks based on industry fixed percentage (10%). Lien holdbacks provide a form of security by creating a pool of money that is used to pay claims as a project progresses.
  • Deficiency Holdbacks which are entered at the discretion of the Project Manager.