Capital Projects / Projects/ Facility Construction Project Manager

Holdbacks

Holdbacks are a contractual condition in which money is withheld until a goal is accomplished, such as work being completed.

The application tracks two specific types of holdbacks:

• Lien Holdbacks based on industry fixed percentage (10%)
• Deficiency Holdbacks which are entered at the discretion of the Project Manager.

The application calculates the lien holdback tax and deficiency holdback tax for you using the invoice tax rate. You record holdbacks as part of entering your invoices into Archibus. See Recording Invoices.

Invoice Tax Rate

The application calculates the tax rate for an invoice as follows:

Invoice Tax Rate (invoice.tax_rate) = Billed Amount (invoice.amount_billed) / Billed Total (invoice.amount_billed_total)

You enter the Billed Amount when recording the invoice. The application calculates the Billed Total by totaling the Billed Amount, Tax Amount, and the Reimbursable (Non-Taxable) amounts.

The application uses this tax rate to calculate the Lien Holdback Tax and Deficiency Holdback tax amounts. You can adjust these amounts as needed. The invoice tax rate is not shown in the invoice record.