Why are funds withheld during construction?

Holdback, retainage, and withholding are all terms used to describe monies withheld from the Contractor by the Owner. In Ontario, holdback is legislated as a percentage of the progress of work, and is intended to protect employees on a project site.

Many  contracts also include special funds, and I have given them a different name to avoid confusion. In Canada I tend to use the term retainage for sums that are withheld at the discretion of the owner or consultant. Retainage (or non-legislated holdback amounts) are typically lump sums used to cover the costs of deficiencies, or for remediating unaccepted work.

In the US, just reversing the names of the aforementioned witholdings seems to work fine - Retainage for withheld funds under legislative direction, and holdback for discretionary withholding.

As a more recent development, many school boards and large institutions now require something called warranty holdbacks. These are what I refer to as contractual holdbacks, and they are typically intended to protect the owner from a “lack of performance” during the commissioning period.
 
In summary, I’ve identified three different ways to withhold payments for invoiced work. The first is defined by provincial or state legislation in the form of a lien act (or similar), and is non-negotiable. The second is a withholding outlined in the contract terms, covering specific concerns of the owner. Finally, the third withholding is discretionary, and conditional on the completion or remediation of work already contracted.

FIVE by StatsLog can manage all three of these witholdings, in any combination - just another part of what makes FIVE the most powerful and flexible choice for your construction contract administration.

FIVE SOLO Edition Holiday Sale!

Save 25% when you buy a life-time license for FIVE SOLO Edition - Construction contract administration software for Microsoft Windows.

Hurry, this offer is only available until December 15, 2013!

http://www.statslog.com/pricing.html

inlikewiththecity:

This Is What It Would Look Like If You Dropped Manhattan Into the Grand Canyon
The Case for Automatic Updates

Automatic updates are a hot button issue - those that like them appreciate the time they can save, and those that don’t like them worry that they can cause more problems than they solve.

Our construction contract administration software (called FIVE) is bundled with an automatic update service that runs silently in the background. By default it is enabled, but it can be disabled to accommodate IT departments that prefer to handle updates manually on an as-needed basis.

Although the service can be disabled, it is our strong recommendation that it should be left enabled, and here is the rationale:

  • Automatic updates reduce the demands on your IT department.
    The vast majority of our customers have been successfully using the automatic updates feature. Our interaction with their IT departments is highly limited, and in some cases non-existent (that is to say, it “just works”).
  • Automatic updates are no riskier than manual updates, and problems can be fixed more quickly with automatic updates enabled.
    There will always be an inherent risk that an update could accidentally break previously working functionality, but this risk exists whether or not an update has been applied automatically or manually. If you apply updates manually, then the next update we release to fix the regression (typically within 24 hours) won’t get applied until you have a chance to manually re-update the software.
    In our experience it can take weeks or months for a heavily burdened IT department to update using the manual process. Using the automatic process, our users can have a solution within hours or days, without placing any additional burden on limited IT resources.
  • Changing requirements in the real world mean that new features are constantly required, in some cases “yesterday”
    Waiting weeks or months for a new feature or bug fix is not a viable option. Sometimes your client requests new data that we don’t have automatic calculations for - but we can add those calculations within a day. If you have to wait for a manual update, it can be a long time before you get the new feature, and in the meantime your client is left unsatisfied.
    We also release updates to improve the speed of the program, and improve workflow efficiency that will save you time and money. If you’re waiting for updates, then you are missing out on these benefits, and a significant advantage of your FIVE subscription.

Remember that one major benefit of your FIVE subscription is that you get unlimited product updates at no additional cost. Updates keep your firm ahead of trends and changes in the industry, increase security and functionality, and improve the overall software experience based on the feedback that we get from our customers across the country.

If your firm has decided against enabling the automatic update feature, we think it is a good time to reconsider that decision, and if you have any further questions or concerns about the automatic updates service, please don’t hesitate to contact us.

Forced perspective hallway by Felice Varini.
More here: http://www.pickchur.com/2012/04/incredible-anomorphic-illusions-by-felice-varini/

Forced perspective hallway by Felice Varini.

More here: http://www.pickchur.com/2012/04/incredible-anomorphic-illusions-by-felice-varini/

FIVE Server on Linux

We’ve been testing the FIVE server software on Linux for the past month or so now, and everything is working great.

If you have a Linux server and you’ve been looking for centralized construction contract administration software for your organization, then look no further!

Download and installation instructions are available in PDF format at http://www.statslog.com/linux/five_install.pdf

life-of-an-architecture-student:

submitted by: kwhynot
Season’s Greetings from StatsLog Software!
Photo Credit: An interpretation of “The Kiss” by Gustav Klimt (1862-1918) in Stained Glass by Elizabeth Steinebach

Season’s Greetings from StatsLog Software!

Photo Credit: An interpretation of “The Kiss” by Gustav Klimt (1862-1918) in Stained Glass by Elizabeth Steinebach

Missing the snow

Missing the snow

Whoa! Happy Friday!

Whoa! Happy Friday!

StatsLog.com Updated

We’ve been busy updating our website, with more information about our software, and a cleaner, more modern design.

Please have a look!

Announcing the new project homepage in FIVE - construction contract administration software for architects and engineers. See automatically generated summaries, dashboard, and charts. The new keyword search feature is a powerful feature that highlights the benefits of our database driven approach.

We recommended watching the video full-screen in HD mode (click the gear icon in the embedded video player, and then click 720P or 1080P, then click the full-screen icon).

Get the latest version of FIVE by StatsLog from http://www.statslog.com today!

textbookexample:

An illustrated poster collecting iconic mid-century modern homes, including designs by Eames, Neutra, Koenig, Wright, and Arts & Architecture’s Case Study Houses.

Prints available at http://jamesprovost.imagekind.com

Do want!

Round, cardboard book + CD shelf

Round, cardboard book + CD shelf

If you are an architectural firm working with StatsLog products, we know that your privacy is important, and sometimes critically so depending on the type of projects you are working on.

We’ve just published our privacy policy, which we feel demonstrates our commitment to keeping your information confidential. If you have any questions, or require any clarifications, please don’t hesitate to contact us!

(Click the article headline to see our Privacy Policy in PDF format)