Collateral & Retentions

🎯 Goal of this section

The Securities & Retentions module is used to manage all financial security instruments agreed as part of construction contracts.
In particular, retention amounts as well as performance and warranty bonds are documented, monitored, and linked to the related orders and invoices.

Basics

In construction, securities are used to protect clients against performance or warranty risks.
In smenso, these amounts can be documented transparently, traced, and taken into account automatically.

Typical securities:

• Type of security – Description – Example
• Retention – Percentage retained from each invoice until a bond is provided – 5% of the order total
• Performance bond – Bond securing proper contract performance until acceptance – 10% of the contract value
• Warranty bond – Bond to secure defect claims after acceptance – 5% of the contract value

💡 Note:
Values can be defined individually per order; they are then automatically included in invoice review.

Maintaining securities in the order details

The Securities & Retentions section is located directly in the order details below the General block.

Step by step:

1. 1️⃣ Open the order
2. 2️⃣ Scroll to the Securities & Retentions section
3. 3️⃣ Enter values as a percentage (%) or amount (€) for the following fields:
   • Retention
   • Performance bond
   • Warranty bond
4. 4️⃣ If bonds are stored:
   • Upload the bond document
   • Add validity period and guarantor (bank / insurer)
5. 5️⃣ Save

💡 Tip:
Use the Go to Securities & Retentions button to jump directly to the detailed view for editing or review.

Automatic consideration in invoices

• When recording an invoice, smenso checks whether securities are stored in the linked order.
• If so, retentions are automatically deducted from the invoice amount.
• Once a bond has been stored, the automatic deduction no longer applies.

Example:

• Item – Amount
• Net order value – €100,000
• Retention (5%) – – €5,000
• Payable amount – €95,000

💡 Note:
Automatic offsetting is applied only to approved invoices, not to drafts.

Monitoring and tracking

To monitor outstanding securities, an overview list (e.g., Excel export) can be created.
It shows all orders with stored securities, bond status, and due dates.

Typical filters:

• Bond available / missing
• Securities expired (by expiration date)
• Open retention amounts

💡 Recommendation:
A regular export (monthly) helps request outstanding securities on time or release them when due.

Best practices

• Record securities when creating the order.
• Store bonds digitally (PDF, validity period, guarantor).
• Control invoice deductions only via the order data – not manually.
• Check outstanding securities regularly and release them when due.
• Use the overview list as a controlling tool.

🔗 Related topics

• Chapter 8 – Orders
• Chapter 9 – Invoices
• Chapter 7 – Cost tracking

💡 Practical note:
By automatically considering securities in smenso, the entire awarding and billing process becomes more transparent.
Linking orders and invoices ensures that no securities are overlooked or calculated twice.