Subcontractors
Release retention to a subcontractor
When the subcontractor's work is accepted, release the retention held from its certificates; it becomes payable and is added to its supplier account.
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In this article
Each subcontractor certificate holds back retention, up to the cap in the subcontract. The money stays in the retention payable account until the work is accepted, usually half at provisional acceptance and the rest at final acceptance.
Release retention
Open the subcontract and its money tab. The retention card shows what is held and what was released.
Select Release retention, enter the date and the amount, then select Save.
You cannot release more than is held. Releasing needs permission to release subcontractor retention.
What happens
Debit: retention payable, on the project.
Credit: the subcontractor.
The released amount is added to the subcontractor's supplier account as Subcontractor retention released, and paid like any amount owed to it.
Common questions
Can I release in two steps? Yes. Release part at provisional acceptance and the rest at final acceptance; the subcontract shows what is still held.
Does releasing retention change the project's cost? No. The cost was charged when the certificates were issued; releasing only moves the amount from retention to what you owe the subcontractor.