Finalize Contractual Commitments
Explanation
This activity is used to finalize contractual commitments. This is a manual
operation. However, if valuations are used, retentions need to be considered
as follows:
- On completion of the sub contract, a final retention period, where any
faults may be reported for correction, is usually agreed upon.
- Once this retention period expires, the retention amount must be paid
out.
- Any interim retention should also be released at this point, unless
the supplier has released it at an earlier date.
Prerequisites
N/A
System Effects
N/A