Table of Contents
Safety
Description
The security is a portion of the invoice amount that the client may withhold from the contractor for the duration of warranty claims.
A security is usually granted on partial final and final invoices, but also on individual invoices. The amount can be determined as a percentage or as a fixed amount from the gross invoice amount. The duration of the guarantee period for securities is contractually agreed.
Collateral is due immediately after the warranty period has expired. Collateral is kept in the Customer open item list listed as an open amount.
similar terms
Security retention, security deposit, warranty bond