12-18-2009, 12:45 AM
hi there,
Being on audit of a construction firm ,i evidenced that they treat retention money as liability & rightly so, as the ratio of retention money is decided at the time of binding contract and the construction firm take it as security .on the other side the client retains their bills receivable as their security and only clears on the base of work certified,the client play safe to keep the amount receivable more than the retention money.
Being on audit of a construction firm ,i evidenced that they treat retention money as liability & rightly so, as the ratio of retention money is decided at the time of binding contract and the construction firm take it as security .on the other side the client retains their bills receivable as their security and only clears on the base of work certified,the client play safe to keep the amount receivable more than the retention money.
