Retention is: Understanding According to Experts, Rights, Benefits and Examples
Retention is: Understanding According to Experts, Rights, Benefits and Examples - In the world of development, several calculations are needed which should be calculated carefully so that development can proceed properly and there are no obstacles in it.
Retention is: Understanding According to Experts, Benefits and Examples
Therefore, good retention is also needed so that the management of a project can run well and well. The following is an explanation regarding retention according to experts and the meaning of retention in the form of a project, let's look at the following explanation.
Definition of Retention
Retention is a power of attorney to own something which is a power of attorney because the power of attorney has not paid the payment to the recipient of the power of attorney. And in general it can be said that this retention right is the right to be able to hold something until the receivable is completed to be paid off.
Definition of Retention According to Experts
Retention is the amount of the guarantee that is withheld or unpaid until it meets the conditions agreed in the contract for the payment of that amount or until it can be justified. The definition of retention itself can include joint size.
While the retention value is 5% of the project contract value, meaning that when the construction contract is completed, the contractor will be paid 95% of the contract price.
And the remaining 5% will be held first as retention money which will be held back if there is any imperfections in the building that have been completed by the contractor and must be repaired by contractor.
So retention means one of the money held with imperfections in buildings that have been made in contractors that have to be repaired by several project world contractors.
The retention rate can cover up to 5% of the completed contract of the project being built by the contractor, and 95% of the project price paid.
So knowing retention can also be work done on contractor damage due to user error.
Understanding Retention In Projects
Retention has many meanings in various fields. In general, retention means storage or holding.
However, the term retention has a more specific meaning in the world of construction projects.
The term retention often appears in various concepts in projects, both in handover documents, contracts, and other documents.
Basically retention is an agreement between 2 parties which generally occurs between the project employer and the party who will work on the project.
If it can be related to the term retention which means detention, then in the agreement there will be detention according to the terms and agreements that have been mutually agreed upon.
More specifically, retention is an amount billed for progress that cannot be paid or held up front to fulfill the terms specified in the contract to make the agreed payment or until it has repaired.
The amount of the value withheld is usually 5% of the contract value of the project.
This means that if the contractor has completed the construction contract, 95% of the agreed contract price will be paid to the contractor.
The remaining 5% will be kept as retention money, meaning that if there is a defect in a building and the contractor has to repair it first, this money can be saved.
But usually retention work can be done if the damage is caused by an error in the work done by the contractor.
If there is damage caused by an error during the user's use, then the retention work does not apply and for the completion of the work a certain fee will be charged according to the damage the.
The retention period is usually 3 months to 12 months after completion, depending on the clauses stated in the contract.
After the maintenance period is complete, the money owned will be immediately paid to the contractor.
The retention period usually starts after there is a job handover certificate.
After the retention period ends, the checklist will be reviewed again for the work done by the contractor.
If all work has been declared OK, a formal handover report will be made at the second job.
If it has been carried out, it will be followed by signing a report related to the second handover of work, so that the contractor's task is considered complete so that the retention money can be disbursed immediately.
Benefits of Retention in Projects
The following are some of the benefits of retention in projects, namely as follows.
- Retention can be useful to ensure that the contractor will soon complete the project under the agreed conditions.
- Retention can be used as very real evidence in dealing with contractors if work standards cannot be met or work failure occurs.
- Availability of funds from other contractors or subcontractors needed to complete the work.
- Trust in the project owner will appear stronger if you use a money guarantee.
Retention Rights
From the description above, retention will guarantee something very valuable, so that there are several parties who will agree.
Therefore, by maintaining one of the parties involved to have the same rights otherwise, there is a substitution of interest in relation to the granting of authority over said replacement right Alone.
The right of retention can receive the power to hold something that will later become the recipient of the power of attorney for the right to hold something that will be returned.
In the Rights of the Criminal Code what is meant by retention is Article 1812 of the Civil Code:
"Recipient of the form of power of attorney who has the right to hold the power of attorney in his hands to him everything that will be demanded from the consequences of giving power of attorney"
In exercising their rights and powers, they must pay attention to their retention, as follows:
- When given power by appointing someone as a replacement in a matter.
- If given a power without naming a specific person, he will be able to aid the power.
Retention Example
The normal duration of retention time is 3 – 12 months and can change depending on the clauses in the contract and it has been agreed and if the maintenance time is up then the detention money will be given to distributor.
The retention period usually begins when the job handover message is complete. When the retention period ends, there will be a list of completed jobs.
If all work has been deemed fit, a second submission of work will take place. After that, it means that the contractor's obligations have been completed and the money can be paid directly to the contractor.
How to Manage Retention
From the above review it is clear that retention can also regulate various aspects of life by fulfilling existing and agreed needs.
Here are some ways to manage retention, including the following:
- Look for effective ways to make the project work.
- When offering to conduct a competitive assessment, all projects must be clearly visible.
- Indicate the project with the company that will establish a cooperative relationship.
- Describe the project and career path.
That's all we can say about the discussion above about retention, retention rights and some examples.
Here's an explanation about Retention is: Understanding According to Experts, Rights, Benefits and Examples, from About the knowledge.co.id hopefully it can be useful and can add to your insight. Thank you for visiting our blog and don't forget to read other articles.
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