Contract Security and Release Terms

Once you have created your Contract and specified the Contract Sum, you can then setup the Security and Release Terms for that Contract.

ClosedGetting Started

Setup required before use

 Where Is It?

Set Contract Sum

Contracts > Contract Settings > Contract Security tab

Tips:

Configure the contract security settings

ClosedComplete the following steps
  1. Select the security type from the drop down list.
  2. Enter the details and release terms if prompted.
  3. Save.

Tip: Learn how to Release security.

Security types

There are four options when setting up the Contract Security as listed below.  Each security type has a specific setup to determine the amount of security to be held and how much to release at Practical Completion then at Final Completion. 

  1. None
  2. Retention
  3. Bank Guarantee
  4. Insurance Bond
ClosedRetention

Select this option if the contract uses retention for its security.

ClosedComplete the following steps
  1. Click the drop down list at Specify the security of the contract.
  2. Select Retention.
  3. Enter the percentage to be retained at each progress claim.
  4. Enter the maximum percentage to be retained from the contract sum.
  5. Select whether this is to be expressed as a percentage of the Current Sum or the Original sum.
  6. Enter the percentage of the retention to be released at Practical Completion.
  7. Save.
ClosedAuto-Deduct Retention

You have the option for Synergy to automatically deduct a retention amount from each approved progress claim until the retention limit is reached.  If this option is not selected, you have the flexibility to decide which progress claims are subject to retention.

ClosedRetention Terms

Set the percentage of how much should be retained at each progress claim. Typically this is 10% from each claim, up to a maximum retention of 5%. When these figures are entered, a maximum retention value ($) is calculated. This figure will change if and when CSAs are added to the contract, which adjust the overall contract sum - though this will depend on the following settings:

The Current SumClosedThe maximum amount to be retained for the overall contract expressed as a percentage of the Current Sum.  This option will include Contract Sum Adjustments when calculating the total amount to be retained, this amount will adjust as the contract sum is adjusted.

The Original SumClosedThe maximum amount to be retained for the overall contract expressed as a percentage of the Original Sum.  This option will not include any Contract Sum Adjustments and the total value to be retained will remain unchanged for the life of the contract.

ClosedRelease Terms

The release terms determine what percentage of the overall amount retained is to be released at Practical Completion and then at Final Completion.  By filling in the percentage to be released at Practical Completion, Synergy automatically fills in the percentage to be released upon Final Completion to make up 100%.

ClosedBank Guarantee

Select this option if the contract uses a bank guarantee for its security.

  1. Click the drop down list at Security Type.
  2. Select Bank Guarantee.
  3. Enter the percentage of the guarantee to be released at Practical and Final Completion.
  4. Enter the Guarantee Amount as an overall dollar value. The percentage is calculated automatically.
  5. Save.

Tip: The value of the guarantee is presented on the Contract Summary document inclusive of tax.

ClosedInsurance Bond

Select this option if the contract uses insurance for its security.

  1. Click the drop down list at Specify the security of the contract.
  2. Select Insurance Bond.
  3. Save.

Want to learn more?

Looking for more help? Try reviewing the following topics: Concept Link IconView Topics

 

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