Video 21 of 26: Retentions and Security

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Watch the Retentions and Security video on YouTube

Watch the video walkthroughhttps://youtu.be/jaPG7PmI14I

In this walkthrough, you'll set up and track retention in the Deep Space web app. We'll cover how retention works, setting it on a subcontract, sliding rates and value bands, and tracking and releasing what you hold. Then the questions we get most.

The full series: 26 videos in Builder's Wheel order (Win, Set Up, Build, Move the Money, Govern)

Build an Estimate and Proposal Win
Multi-Trade Tender Win
Set Up Your Workspace Set Up
Add Users and Give Them Access Set Up
Company Settings: Get Your Documents Ready Set Up
Connect Xero and Map Your Cost Codes Set Up
Folder Templates and Project Documents Set Up
Document Templates vs Contract Templates Set Up
Email Templates and Sending Documents Set Up
Head Contract Setup Set Up
Build Your Programme Set Up
Subcontracts: Award to Executed Set Up
DS Site: Invites, Inductions and Site Sign-on Build
Drawings to Site and Subbies Build
Run Your Programme on Site Build
RFIs, Notices and the Project Inbox Build
Inbox to Xero: How the Money Flows Move the Money
Purchase Orders Move the Money
Process Supplier Invoices Move the Money
Subbie Claims: Inbox to Payment Schedule Move the Money
Retentions and Security Move the Money
Variations, End to End Move the Money
Provisional Sums: Allowances, Drawdowns and Over-runs Move the Money
Progress Claims to Your Client Move the Money
Budget and Forecasting Govern
Delegation of Authority Govern

How retention works

In Deep Space, retention is a contractual entitlement. Deep Space records what's withheld, when it becomes claimable, and when it's released and paid. It doesn't hold funds or manage trust accounts. The money and the payments stay in your finance system.

Set it on the subcontract

Retention is set when you create the subcontract, under Security Settings. Choose retention, a bank guarantee, both, or none. Then set the retention rate and an optional cap.

Include Variations in Retention is on by default. Turn it off to hold retention on the original works only. Retention control decides who sets the amount on each payment schedule. Automatic withholds the calculated amount. Manual pre-fills it, and lets you change it.

For a rate that changes, tick Enable Sliding Retention and click Configure Rules. Milestone mode changes the rate at a milestone or a percent complete. A Practical Completion rule applies from the date PC is recorded as reached, not the planned date.

Contract Value Bands set a rate per dollar band, like 10 percent up to 200 thousand, then 5 percent above. Bands run on the cumulative certified value, and each rate applies only to the slice inside its band.

Once it's saved, the subcontract's Retentions and Security tab shows the rate, the cap, the release split at PC and at the end of the DLP, and what's held and released.

Track and release

Commercial, Retentions and Security, Subcontractor Retentions lists every subcontract with its retention settings, what you're currently holding, and the next release.

Open one to see the retention withheld from each certified claim, what's been released, and what you're still holding.

The Outlook tab shows the rate and cap, your future exposure, and whether you can release now. Nothing is released before Practical Completion is recorded.

Head Contract Retentions works the same way for the retention your client holds on your claims, and when you can claim it back.

Common questions

Every claim shows zero retention.

The rate wasn't set on the subcontract. Set it before the subcontract is executed. If it's already executed, ask Deep Space support to set it and load what you've held to date.

The rate didn't change at Practical Completion.

PC rules apply from the date PC is recorded as reached in Key Dates, not the planned date.

Retention is being taken on variations.

Untick Include Variations in Retention on the subcontract.

I can't release retention yet.

Nothing is releasable until PC is recorded. Then the PC share can be released, and the rest at the end of the DLP.

Where does retention go in Xero?

Retention posts to the Retention Payable and Retention Receivable accounts you choose in Finance Integrations.

Quick reference

Set the rate and cap under Security Settings
Sliding retention: milestones, cap or value bands
Automatic or manual retention control
Subcontractor and Head Contract Retentions registers
Release from PC, the rest at the end of the DLP

Need a hand? Email help@deepspacegroup.ai

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