🤝Flexibility Where You Need It
In the construction industry, it's common practice for clients to withhold a portion of each payment—known as a retention—until the completion of a project. This serves as a financial safeguard, ensuring that contractors fulfil all contractual obligations, including addressing any defects or incomplete work.
Forecast 5's Contract Retentions specialised feature to accommodate this practice, allowing businesses to budget and track retentions effectively within their financial forecasts.
Key Features of Contract Retentions
📊Accurate Budgeting:
Allocate a percentage of each invoice as retention, reflecting the amounts withheld by clients.
👥Integrated Tracking:
Monitor retained amounts alongside other financial data, providing a comprehensive view of your project's financial status.
💡Flexible Application:
Apply retentions to both cost and sales records, ensuring that all aspects of the project are accounted for.
🔄Scenario Planning:
Utilise the "What If" scenarios to model the impact of retentions on cash flow and profitability under different conditions.
📈Compliance and Reporting:
Generate reports that include retention details, aiding in compliance with contractual agreements and facilitating transparent communication with stakeholders.
By incorporating Contract Retentions into your Forecast 5 setup, you can ensure that your financial forecasts accurately reflect the realities of construction project cash flow, leading to better financial planning and project management.
