You can use subcontractor payment retentions to withhold an agreed upon amount from the payments for the delivered work by a subcontractor. At a later moment, if no defects are identified, the retained amount can be released and paid.

To define the payment retention terms for subcontractors, the vendor payment retention terms are used. You can define these payment retention terms for vendors that are marked as subcontractor.

For more information on vendor payment retention terms, refer to Manage vendor payment retention for projects.