Manage Retention Money and Defect Liability Periods (DLP)

1. Overview & Business Value#

This comprehensive operational guide details the architecture, business workflows, configuration parameters, and execution steps for Manage Retention Money and Defect Liability Periods (DLP) within SmartERP.

Tracking 5% retention escrow accounts, practical completion handovers, snag list rectification, and final retention release.

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2. Prerequisites & Security Access Groups#

• Required Modules: project, smarterp_project_governance, hr_timesheet
• Security Groups:
  • Project User (Technical ID: project.group_project_user)
  • Project Administrator (Technical ID: project.group_project_manager)
  • Timesheet Approver (Technical ID: hr_timesheet.group_hr_timesheet_approver)
• Master Data Dependencies: Project master records, milestone stages, work breakdown structures (WBS), bill of quantities (BoQ), and employee billing cost rates.

3. Step-by-Step Configuration & Execution#

Step 1: Navigating to the Module Interface#

1. Log into your SmartERP instance at https://smarterp.et/odoo.
2. Open the main App Switcher (grid icon in the top-left corner).
3. Select the Projects app icon.
4. From the top navigation bar, open Projects → Dashboard → My Tasks / All Projects; Timesheets → Timesheets.

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Step 2: Creating and Parameterizing Records#

1. Click the New button in the top-left control panel.
2. Complete the mandatory fields in the record form:
   • Project / Task Name (Mandatory): Descriptive title of work package or milestone deliverable
   • Assigned Project Team (Mandatory): Lead project manager and operational contributors
   • Planned Dates (Mandatory): Scheduled commencement and milestone completion deadlines
   • Customer / Stakeholder (Mandatory): Client partner linked to project contract and invoicing terms
3. Configure optional operational parameters and localized tags as required:
   • Analytic Cost Center (Optional): Dedicated project accounting account for expenditure tracking
   • Bill of Quantities (BoQ) Line (Optional): Specific contractual BoQ item code for construction tracking
   • Milestone Billing Weight (Optional): Percentage of contract value tied to milestone acceptance
4. Click the Save icon in the control bar to commit the record.

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Step 3: Validating and Processing Transactions#

• State Transitions: Execute operational state progression (New / Scoping → In Progress → Review / Testing → Completed → Archived).
• Ledger & System Impact: Timesheet confirmations and project purchases post direct expenditures to the project analytic account, enabling real-time cost vs. revenue margin analysis.
• Audit Verification: Automated recording of author ID, timestamp, and immutable revision history.

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Retention Money Governance#

Under standard Ethiopian public and commercial construction contracts, the employer withholds 5% of gross certified earnings from every IPC as a performance security.

The Two-Stage Retention Release Lifecycle#

1. Practical Completion (Substantial Handover):
   • The consultant issues the Taking-Over Certificate (TOC).
   • First 50% of retention money (2.5% of total contract value) is released to the contractor (or exchanged for a Retention Bank Guarantee).
2. End of Defect Liability Period (Final Completion):
   • Typically 365 calendar days following practical completion.
   • The joint inspection team reviews the snag list.
   • Upon rectifying all latent defects, the consultant issues the Final Completion Certificate.
   • The remaining 50% of retention money is disbursed.

Procedure: Processing Retention Release#

1. Navigate to Projects > Construction > Retention Escrow.
2. Open the project retention ledger.
3. Click Release Retention Installment.
4. Select Stage 1: Taking-Over Certificate.
5. SmartERP automatically generates the retention invoice and updates general ledger account 110450 Retention Receivable.

4. Advanced Configuration Points#

• Automated Actions & Scheduled Tasks (Crons):
  • Project: Flag overdue milestone deadlines (project.ir_cron_overdue_tasks): Runs daily to notify project managers of pending schedule delays
  • Timesheets: Send unsubmitted reminder alerts (hr_timesheet.ir_cron_timesheet_reminder): Runs weekly on Friday afternoon to remind team members
• Custom Print Templates & Reports:
  • Project Status & Milestone Execution Scorecard
  • Interim Payment Certificate (IPC) for Construction
  • Project Timesheet & Resource Utilization Summary
  • Earned Value Management (EVM) Financial Report
• Multi-Company Rules: Record-level security isolation under Company 1 (Ashewa Technology Solutions S.C.), preventing cross-company ledger leakage across parent and subsidiary legal entities.

5. Comprehensive Troubleshooting Matrix#