Plan on a Smoking in Pregnancy-Samples for Students-Myassignment

Question: Make a Project Arrangement on a Smoking in Pregnancy. Answer: Presentation The essential focal point of the venture is to annihilate the impacts that relate to smoking in pregnancy. The objective populace is ladies of childbearing age (18) in Illinois state who are pregnant or have possibilities to have youngsters in future. The run time of the task is four years. The time span will be adequate in the combining of the activities center destinations and the sub-targets (strategic and operational goals). The spending plan of the venture will be $65000. The activity will be blended to hold pregnant ladies who are increasingly educated about the medical advantages of being without smoking. Foundation and setting Medical problem The greater part of the children in Illinois State that have been destined to pregnant ladies who were smoking have been of a lower weight, conceived rashly, contract the Sudden Infant passing Syndrome and some are brought into the world with birth abnormities. Smoking can be characterized as the inward breath of tobacco through its items either legitimately or in a roundabout way. The impacts of smoking on the unborn children are not brought about by the smoking of the mother alone however even constantly and third-hand smoking. Recycled smoking alludes to the inward breath of tobacco smoke from a stogie from a smoker. The inward breath of this smoke has the impacts of decreasing the heaviness of the infants, prompts ear issues, improvement of asthmatic and lung diseases that induce SIDS among babies after birth(1). Third-hand smoking portrays the inward breath of the remaining parts of stogie that could have stopped up on family things like covers after the smoking of cigar(2). Infants that take in the third-hand smoke are probably going to agreement to inhale issue related diseases. The venture will join every one of these definitions to achieve its foreordained targets completely. Network Illinois State will be the essential topographical zone of core interest. The focused on populace will be ladies Medical problem defense Significance Identify that smoking during pregnancy is a factor that has added to high mortality passings because of the unfriendly impacts that infants are presented to. The mother additionally is presented to wellbeing dangers that are identified with smoking(1). Evasion of smoking among pregnant ladies has medical advantages that are not constrained to; Infants Infants are brought into the world progressively develop. Abrupt newborn child passing disorder probabilities are checked. Infants are brought into the world solid with the correct loads and liberated from breathing issues Instances of stillbirths are controlled. Mother Increasingly solid during pregnancy Diminished intricacy at the hour of conveying the child. The teeth will be more white that is liberated from the dim earthy colored stains from tar in the stogie. The skin will have an all the more even tone which is liberated from wrinkles. The ladies will be proactive and in a superior spot to deal with the child. The affectability to smell or to taste will be improved. Patterns Information that is explicit to the Illinois state is right now not accessible. The examples that will be utilized will identify with the United States measurements on the issue. The insights show that more than 40000 people in the United States kick the bucket because of second-hand smoking(1).The pervasiveness of tobacco use in ladies is 13.7%. 23.6% of ladies smoked during pregnancy, 10.8% utilized stogies during pregnancy, and 16% smoked in the wake of conceiving an offspring. Significance/Costs of the Trends Information identifying with the costs that legitimately depict the smoking based impacts among pregnant ladies isn't accessible. There is proof that smoking is regular among pregnant ladies yet there are no points of interest on the costs that are related with tobacco use in pregnancy. Endeavors are in progress to use the Smoking-Attributable Mortality Morbidity and Economic Costs (SAMMEC). SAMMEC will help in the age of information that will evaluate the costs that will give a meaning on the costs that the wellbeing division causes in the expanded smoking in pregnancy(2). The SAMMEC will establish the investigation of the immediate and circuitous expenses related with the mortality and the dreariness. The SAMMEC is an apparatus that is utilized in the controlling of tobacco utilization among people in the USA. Mediations Human services suppliers guarantee that pregnant ladies that visit the medicinal services places in Illinois are screened of any tobacco substances in their frameworks. The aftereffects of the tests are then sent to the network activity program organizers who render social insurance administrations to the influenced ladies. Testing for smoking is urgent at whatever point one visits a wellbeing place simply like some other test.The government has apportioned adequate assets regarding offices to help in the provision of clinical consideration to the influenced ladies. Proof based systems are used with the goal that the social insurance administrations are customized to fit the requirements of the objective population(6). The people group is consolidated in the diminishing of the cases that are identified with smoking in ladies. For example, it is associated with instruction programs that sharpen the ladies on the impacts of tobacco use in pregnancy.The wellbeing parental figures manage people in order to make a road for observing of the influenced gathering in order to understand the viability of the network activities. Practicality Illinois state has had a few projects that have added to the health of pregnant ladies as smoking is concerned. The supporting associations incorporate; Battle for Air Climb Lung Force American Lung Association Proof for objective, targets, and sub-goals Objective Exploration that is identified with dynamism in the human services giving to the populace. Sub-Objective 1.1: It is to the human services clear that when instruction activities are made to the social insurance providers, at that point information the board will improve to a 8% sound level. The quantity of casual parental figures will decay by an expected 5%. Sub-Objective 1.2: With the expert wellbeing parental figures, the nature of clinical consideration will improve by 5% with occurrences of expert undue consideration decreased by 2.5% which is honorable constantly 2019. Target 2: Combination of network programs, the legislature and the tobacco creating companies(2).The offer is to guarantee the help of the significant partners in the decreasing of the tobacco use by pregnant ladies. Sub-Objective 2.1 Network programs, the administration and tobacco organizations ought to be sharpened on the importance of annihilation of tobacco utilization among pregnant ladies thus that they can completely bolster the program that means to decrease its wellbeing effects(3). Sub-objective 2.2 Guideline of advertising of the tobacco items ought to be actualized to lessen the temptations of the showcasing procedures among ladies of childbearing age(4). Objective From the two goals recorded, the chief point of the venture is altogether annihilate the smoking in pregnant ladies to understand a solid network Medical problem examination Essential partners: Ladies to be moms Infants conceived by smoking ladies Optional partners: Families Companions Human services suppliers Tobacco organizations The administration Undertaking accomplices: American Lung Association Objective, goals, and sub-targets Objective: To destroy smoking in pregnant ladies in Illinois State Goals and sub-targets Target 1: Expanding the capability level by 7% among the clinical guardians in the following five years. Sub-objective 1.1: Expanding information the executives by 8% by 2019. A decrease in the quantity of casual parental figures. Sub-objective 1.2: Proficient undue consideration will be diminished by 2.5%, and the nature of clinical consideration will improve by 5%. Target 2: Mix of the considerable number of partners on the side of the destruction of smoking in pregnancy. Sub-objective 2.1: Teaching of the partners of the significance of smoking free pregnant ladies Sub-objective 2.2: Guideline of advertising of tobacco programs through media stages. References Suzuki K, Sato M, Zheng W, Shinohara R, Yokomichi H, Yamagata Z. Impact of maternal smoking suspension previously and during early pregnancy on fetal and youth development. Diary of Epidemiology. 2014 Jan 5; 24(1): p. 60-6. Novakovic B, Ryan J, Pereira N, Boughton B, Craig JM, Saffery R.. Postnatal solidness, tissue, and time explicit impacts of AHRR methylation change in light of maternal smoking in pregnancy. Epigenetics. ; 9(3): p. 377-86. Dolan CV, Geels L, Vink JM, Beijsterveldt CE, Neale MC, Bartels M, Boomsma DI. Testing causal impacts of maternal smoking during pregnancy on offsprings externalizing and disguising conduct. Conduct hereditary qualities. 2016 May 1; 46(3): p. 378-88. Skripak JM. Relentless impacts of maternal smoking during pregnancy on lung capacity and asthma in young people. Pediatrics134(Supplement 3): S146-.S146. 2014 Nov 1. Dior UP, Lawrence GM, Sitlani C, Enquobahrie D, Manor O, Siscovick DS, Friedlander Y, Hochner H.. Parental smoking during pregnancy and posterity cardio-metabolic hazard factors at ages 17 and 32. Atherosclerosis. 2014 Aug 31; 235(2): p. 430-437. Chamberlain C, O'Mara?Eves An, Oliver S, Caird JR, Perle SM, SJ, Thomas J. Psychosocial intercessions for supporting ladies to quit smoking in pregnancy: The Cochrane Library.; 2013 Oct 23. A. H. Examples of stopping smoking during pregnancy and subtypes of preterm birth. In141st Tong VT, Dietz PM, Morrow B, D'Angelo DV, Farr SL, Rockhill KM, England LJ. Patterns in smoking previously, during, and after pregnancyPregnancy Risk Assessment Monitoring System, United States, 40 locales, 20002010. 2013 Nov 8; 62: p. 1-9. Castrillo SM, Rankin KM, David RJ, Collins Jr JW.. l. ;18(10). Little for-gestational age and preterm birth across ages: a populace based investigation of Illinois births. Maternal and youngster wellbeing diary. 2014 Dec 1; 18(10): p. 2456-64. Rockhill KM, Tong VT, Farr SL, Robbins CL, D'Angelo DV, England

United States as a World Superpower

Ashley Torgerson Dr. Earthy colored International Relations second May, 2012 United States as a World Superpower The ascending to the status of world super force doesn't occur incidentally. To investigate the excursion to the top, we should perceive the battles and hindrances that were survived. As Americans we can gladly say that we live in a nation with comprehensively perceived matchless quality. As expressed before, it was anything but a simple title to acquire. Thinking back from the beginning of time we can see explicit instances of how we started our ascent to control and what it has taken to protect our power.Some of our later history has indicated that numerous individuals are addressing how much longer we will have the option to hold this force. I anyway feel firmly that America can stay a world superpower. America was not generally observed as one of the world’s superpowers. Our ascent to control was centered around a couple of unmistakable main thrusts. These incor porate the ascent of free enterprise, military predominance, and a financial blast all which happened from Post war period, for example, World War II and the Cold War (Baker p. 10). These components added to the picking up of America’s power.It is additionally imperative to take a gander at the variables that enabled America to keep this force. Those impacts were encircled around America’s capacity to turn into a command power in the universal framework, and keeping up a steady economy (Mandelbaum p. 213). History has demonstrated numerous instances of nations rising and tumbling from power. Because of this numerous Americans feel they we are on a comparative way. Adding to this descending way is the expanding intensity of Asian and Middle Eastern (Bar p. 41). Of these nations China is perceived as one with the most potential.China has increased an expanding job on the planet framework through material abilities, hard powers, and through human or social capacities or d elicate forces. (Gilley p. 245) China’s greatest draw is its material abilities since it has driven the country to become one the universes quickly developing ventures. â€Å"During the three decades to 2010, China accomplished maybe the most quick continued pace of monetary improvement throughout the entire existence of the human species, with its genuine economy developing just about 40-overlay somewhere in the range of 1978 and 2010. † (Unz p. 12) While this shows the immense intensity of China’s financial area, its delicate forces can't be over looked.The Chinese work power bolsters its inner interest for items as well as supports that of the several different nations the items are transported as well (Unz p. 11) Without a huge talented work power this may not be conceivable. From these reasons we can presume that China is taking steps the correct way of super force and in years to come may even outperform the United States. In spite of the fact that the eme rgency of intensity battle is happening, America won't go down without a battle. â€Å"The United States despite everything has the world's most grounded military. (Walt p. 6). Having a solid military sets up the United States incomparable force as well as it implements to different nations that they can keep that power. With power comes a responsibilty. The United States military powers are frequently called upon to intercede in overall issues, showing its predominance in worldwide undertakings. Beside military mediation the United States assumes a key job in worldwide undertakings through financial venture (Ferguson p. 23). Interest in a far reaching of zones keeps the economy diverse.We see the impacts of a various economy day by day through items being attractive all around the globe (Brzezinski p. 291). The United States has the accessible assets to accommodate the world market. These variables go into making life simpler in the United States, in this manner creating a general public that is living longer and going through more cash (Brzezinski p. 292-294). Eventually these reasons secure the United States position as prevailing force to be reckoned with. Dependent on these different reasons I feel unequivocally that the United States has the ability to stay as a world superpower, not being outperformed by China.It is genuine that numerous variables go into deciding a politically influential nation however these three stand apart to me: financial steady, military force, and at the highest point of social and social finish of the range. While China may have the financial way to contend, they don't have the predominant military power the United States has. â€Å"United States is the main nation with the way to attack numerous medium-size nations in different landmasses and still support not many setbacks. No other nation as of now is even close being able to extend military force with such power and range† (Internet Source).The mix of financial secu rity and military force has prompted the United States huge effect in the worldwide framework. Authoritative obligations are constantly put on the world’s prevailing force. The United States has managed these obligations regarding numerous decades and has demonstrated its capacity to lead the world in an amicable manner. Anna Applebaum from the dWashington Post composes: â€Å"The United States is a superpower without a partner,† implying that the United States has taken care of the world as a predominant force for this long and isn't losing handle of that. BibliographyAcademic Journals 1. Bar, Shmuel. â€Å"America's blurring Middle East impact. † Policy Review 166 (2011): 41+. Scholarly OneFile. Web. 22 Mar. 2012. 2. Cook, Andrew. Developing a post-war request: the ascent of US authority and the beginnings of the Cold War. † CHOICE: Current Reviews for Academic Libraries Feb. 2012: 1129. Scholarly OneFile. Web. 22 Mar. 2012 3. Ferguson, Yale H. â€Å"Ap proaches to Defining ‘Empire' and Characterizing United States Influence in the Contemporary World. † International Studies Perspectives 9. 3 (2008): 272+. Scholarly OneFile. Web. 21 Mar. 012. 4. Gilley, Bruce. â€Å"Middle powers during extraordinary force changes: China's ascent and the eventual fate of Canada-US relations. † International Journal 66. 2 (2011): 245+. Scholarly OneFile. Web. 4 May 2012 5. Unz, Ron. â€Å"China's ascent, America's fall: which superpower is increasingly compromised by its ‘extractive elites'? † The American Conservative 11. 5 (2012): 12+. Scholastic OneFile. Web. 4 May 2012. 6. Walt, Stephen M. â€Å"The end of the American period. † The National Interest 116 (2011): 6+. Scholarly OneFile. Web. 4 May 2012. Books 7. Brzezinski, Zbigniew, and Brent Scowcroft.American and the World: discussions on the eventual fate of American international strategy. New York: Basic Books, c2008, 291 p. 8. Mandelbaum, Michael. The thrifty superpower: America’s worldwide administration in a destitute period. first ed. New York: Public Affairs, c 2010, 213 p. Paper 9. ANNE APPLEBAUM. â€Å"Superpower without a Partner. ,† The Washington Post, November 24, 2009 Tuesday, Editorial Copy, Pg. A19 782 words Internet 10. Futurist, The. â€Å"Why The US Will Still be the Only Superpower in 2030. † typepad. N. p. , n. d. Web. 4 May 2012. http://futurist. typepad. com/my_weblog/2006/05/why_the_us_will. html

Whats a Retainage Fee (And How Its Used)

Whats a Retainage Fee (And How Its Used) Retainage fee is an amount withheld from a contractor by the client or project owner. It is usually negotiated and agreed upon before the start of a project.The purpose of a retainage fee is to give the client a guarantee that the work will be completed on time and as per his needs.Although the successful completion of a project is expected, contractual details have to be put in writing.Although the concept of a retainage fee can be implemented in any business setting, it is most common in the construction industry.This has been necessitated by the complexity of construction projects.These projects often get delayed as changes are introduced in the course of the work.If you are a contractor, it is important that you actively participate in the negotiations of the retainage fee.In case you are not available, then an attorney can help. Just remember that it will cost you.Attorney costs aside, a construction attorney might be the best option for you especially if you are not experienced enough.If you are getting your first project with a big client, hiring an experienced attorney for the negotiations can be very helpful.As a project owner, a retainage fee will protect you from liens, claims and contractor defaults.The fee is only a small percentage of the full project cost (usually 10%).Still, you are assured of saving some money to offset any loss and inconvenience brought about by any incomplete work.History of Retainage FeeRetainage fees started in the UK during the construction of the UK railway system in the 1840s. The project was obviously a big one and the amount of work was more than the workers could complete.This created a demand for new contractors to join the project.Some of them were not only inexperienced, but also lacked the qualification to successfully complete their assigned portions of the work.This was a problem for the railway companies and they had to come up with a way of mitigating the risks and losses resulting from this.It became common f or them to withhold up to 20% of the total cost of the work. This was however designed to target the contractors’ profits only.The purpose of this was two-fold, and is still the same today. It is to provide the client with some protection from liens and defaults while giving the contractor an incentive to finish the work accordingly.There may be cases of contracts not implementing a retainage fee.This is not common and may not be good practice for big projects. All the same, it happens depending on the relationship between the client and contractor.The biggest reason a client can decide to ignore this provision is a record of successful work from a contractor.This will work on a project by project basis and cannot be expected to be the norm with a particular client.If you have consistently provided great services to a client for some time, he may decide to forego the retainage fee.This is definitely to your delight as a constructor and can improve your cash flow but comes with ext ra pressure.RETAINAGE FEE ACCOUNTSThe retainage fee is part of your business.As such, it has to be reported in your books. As a transaction by two parties, the amount involved is reported differently by the client and contractor.Retainage Fee PayablesIn accounting terms, money either leaves the company or comes into the company. When money leaves the company, it is termed “payable”. This will be the case for the party making the payment.In the case of a project you have assigned to a contractor, you are the one paying the money to him. He is the service provider while you are the recipient of the service. As such, your obligations are different.The full cost of the project will be recorded in your books using a suitable account description. This will be reflective of the kind of work being done. It may be “Boardroom Repairs,” “Ohio Branch Construction” or anything else.However, the retainage fee slightly differs from this overall cost. Since this is not paid until the en d of the project, you will record it as a liability. This is a payment you are expected to make at a later date.Retainage Fee ReceivablesAs the contractor, you also have to record the details of the retainage fee in your books.Because you are to receive payment, this will be recorded as a “receivable”.Although the payment is a liability to the client, to you it is an asset. You will be like a creditor to the client who now owes you money.When preparing your financial reports, e.g. your balance sheet, you will record this as a current asset.When you finally get paid, this can be used for operational purposes as it becomes part of your cash flow.You can also invest it depending on your business preferences.STEPS FOR COLLECTING RETAINAGE FEEThe retainage fee is an amount which should be collected.And for your benefit, you should collect it as soon as possible.The earlier you receive the full amount payable to you after the completion of the project, the better.As with other financi al obligations, your client is also aware of the need to pay the retainage fee.All the same, that will only happen after you have done all that needs to be done according to the contract you signed.Here are the steps you should take to collect your retainage fee soonest and with minimum challenges.Complete the Punch ListOne of the biggest obstacles to receiving the withheld payment is the punch list.Though closely associated to a checklist, the two are very different from each other.A checklist is a list of the things which should be done as part of the general project work. This is essentially a breakdown of the major tasks you are to work on.A punch list is different in that it is generated almost at the end of the project.Normally, you will have checked all the items on the project’s checklist.The client will then do a visual inspection of the project and list down what needs to be worked on in order to give approval for the payment.Depending on the construction work you were d oing, the punch list could include things like fixing leaking taps, unfinished paint jobs, faulty wiring detected in some rooms etc.All in all, the punch list is the project owner’s list of the small details you need to check on. This is the work which will make the client approve of the project’s completion. Provide Close-out DocumentsAfter successfully dealing with the punch list, there is one more thing to do. You have to provide the close-out documents.The close-out documents are those detailing the usage of the property and anything that is a core part of it.This will include copies of the legal documents indicating the agreements between you and the client.You will also need to provide warranty documents showing the relevant guarantees you are providing to the client.If the construction has used materials from your subcontractors, those materials should have a warranty.In many cases, these will include HVAC systems and other electrical systems.Whether the client knows your subcontractors or not, the retainage fee is based on his agreement with you.It is therefore upon you to ensure that all these are provided.If you sourced for material from other sources, you can give the client a copy of the documents while maintaining the original.These documents give the client an assurance of a good job done and availability of support.Submit the Retainage InvoiceAfter all these, the last thing to do is provide the client with an invoice for the retainage fee payment.The invoice is the legal document indicating your claim of the payment initially withheld.Without an official submission of the invoice, you will not be deemed to have requested for the payment.At the same time, you will be mistaken to think that the client will go ahead and make the payment without you requesting for it.Although he is obligated to pay, he will most likely wait for your invoice.For accounting purposes, no payment can be done without the supporting documents.You therefore have to pro vide this in a timely manner to prevent further delays.CHALLENGES WITH RETAINAGE FEEThe retainage fee, as good as it is for project owners, it is a serious challenge for contractors.Where subcontractors are involved, they tend to be the most affected.This is because the general contractor will often withhold some amount from them, just as the client has done.Withholding money from subcontractors has been proven to cause practical issues, especially with regards to cash flow.Since the subcontractor is meant to perform well yet needs the money to work, business relations can become strained.In 2004, the American Subcontractors Association published a report on the practices of retainage fee.It showed that a majority of the main contractors abuse the retainage principle. Here are some of the findings.After a successful completion of the project, subcontractors waited between 30 to 900 days before getting the retainage paid. The average wait time was reported to be 167 days (almost 6 mo nths).The worst wait times were reported to be an average of 529 days (almost 1.5 years) with the longest time being 2,500 days (almost 7 years)In more than 10% of their jobs, subcontractors have received less than the full amount withheld from them.There was reported a widely-held belief that retainage was not being used to ensure work completion. Instead, it was being used by the main contractor and project owner as leverage to push the smaller players into weaker positions.SPEEDING UP COLLECTION OF RETAINAGE FEEThe process of getting paid the retainage fee may take a short or long time.This is dependent on many factors and some of them may be beyond your control.For example, the client may not have the money to pay at the time you make the request.This can be due to cash flow problems. The client may also have planned for other expenses which according to him, are more urgent.This can be very unfortunate but it happens all the same. Money is never in constant supply and budgeting has to be done. This calls for prioritizing payments as a means of handling financial obligations.This is why debtors are usually given notification for payment so they can plan accordingly. Many business payments are done within 30 days after the request is made.This can change depending on the specific agreement between the parties.For a smoother flow, use these tips to speed things up.Stay Aware of the Retainage ReceivablesIf you have several projects you are working on, you can easily forget about the retainage fee. You can work to meet the needs of the other clients and lose memory of the pending payment.When this happens, it will definitely be long before you get paid. Remember that it in many cases, your client may not be in a hurry to pay you as he prioritizes other payments.Keeping in mind that there is some money owed to you is the first step towards working on receiving the money.This will remind you of whatever needs to be finished.There are two lists which will guide y ou in completing the work.1. The project’s checklist â€" the main items on the project’s checklist have to be completed. If you had envisioned finishing the whole project in two years, then try to complete the checklist in a year and a half. This gives you time to work on the punch list.For example, you may be constructing a new office block. The checklist for this may include a 10-story main building, a food court, parking lot and installing security systems. Once these are done, the client carries out an inspection.2. The project’s punch list â€" the client’s inspection will provide a report indicating whether everything is according to his requirements. This process may take some days depending on the size of the project.Anything outlined by the client as needing your attention has to be worked on. From fixing plumbing problems to making slight adjustments, anything can be required. It is only thereafter that you can proceed with your retainage request.Focus on Closing Ou t ProjectsClosing out projects may sound easy but often involves many activities. As such, the process can easily get derailed if you don’t focus on it.In working on closing out the current project, document everything that has been done in the course of the project. Ensure you have the relevant documents for whatever installations have been done.There will be a need for you to provide user manuals to facilitate quick troubleshooting in case of any problems. Some of the installations requiring user manuals are elevators and security systems.There may also be need to train the people who will be operating these systems.Technical training will be necessary to avoid unnecessary calls to your support center.This also empowers the client and gives them control over their property.You can easily get overwhelmed by all the work involved in closing out projects. To avoid this, have a dedicated team to handle it.You can have project managers who follow up with the workers and stay updated to any changes which occur to the project.This is also the person who will follow up with the client on the payment in case you don’t have a dedicated debt collector.Here is a video on some tips on what to do after closing out the project. Stay in Contact with the ClientHaving done all that you were expected to do and probably even exceeded your client’s expectations, do not cut off communication.Do not leave the task of getting paid to the project manager or debt collector.You can stay in contact with the client and find out his experience of the new facility.In the communication, remind him of the pending payment and work on sustaining good business relations.If you are the owner of a construction company, calling the project owner can go a long way in pushing for the retainage fee to be released.Just make sure that all the documentation has been done and there is nothing pending from your side.RETAINAGE FEE ALTERNATIVESRetainage has been in existence for a long time.Over the years, there have been complaints and calls to abolish it.There have been attempts at implementing different strategies of ensuring the involved parties still achieve the same goals. Source: Kegler Brown Hill + RitterThe reasons for calls for change have mainly been revolving around cash flow challenges.Three of the suggested alternatives are mentioned below.Propose to your client the one you think might work best for you. Maybe you will form part of the change.Trust AccountsA trust account can be implemented in various ways. Whichever way is agreed upon, these remain to be one of the contractors’ most relished options available.When a contract agreement includes the clause that the retainage fee will be held in a trust account, the contractor is most happy.In this arrangement, the retainage is deposited in a trust account and a trustee assigned to maintain it. The trustee must be impartial in his dealings with both you and the client.That said, the trustee has the opportunity to invest the money deposited to the contractor’s benefit.This gives you the peace of knowing that your money is sure to come, but it’s also growing.The client on the other hand has n othing to lose.In the even that there are any disputes, you will follow the stipulated process as outlined in the trust account’s terms and conditions.Performance BondsA performance bond is a promise given to a client to insure him against the risks of a contractor failing to successfully complete a project.The bond provides compensation which is similar in amount to the retainage fee.Performance bonds are usually given as a guarantee that a contractor will finish the job. In the event that he doesn’t, then the issuing institution compensates for the loss which has been experienced as a result.Collateral DepositsAnother option which can be attractive to project owners is the deposit of collateral.If you deposit collateral with the bank or directly with the client, you put that asset on the line for possession in case you fail to hold to the terms of the contract.Collateral can be anything of value ranging from land, a house or a car.This gives you the opportunity to receive the full payment of the project so you can comfortably work.Upon completion of the project, you get your deposited security back.CONCLUSIONRetainage fee has been used in the construction industry for a long time.The concept seeks to ensure the contractor finishes the job according to plan.Normally at 10% of the total project cost, it can hinder smooth flow of work especially for the subcontractors down the line.As more options are considered, there might be an end to this practice.The underlying intentions will however remain: the contractor must prove that he will deliver the work he promises to do.

Whats a Retainage Fee (And How Its Used)

Whats a Retainage Fee (And How Its Used) Retainage fee is an amount withheld from a contractor by the client or project owner. It is usually negotiated and agreed upon before the start of a project.The purpose of a retainage fee is to give the client a guarantee that the work will be completed on time and as per his needs.Although the successful completion of a project is expected, contractual details have to be put in writing.Although the concept of a retainage fee can be implemented in any business setting, it is most common in the construction industry.This has been necessitated by the complexity of construction projects.These projects often get delayed as changes are introduced in the course of the work.If you are a contractor, it is important that you actively participate in the negotiations of the retainage fee.In case you are not available, then an attorney can help. Just remember that it will cost you.Attorney costs aside, a construction attorney might be the best option for you especially if you are not experienced enough.If you are getting your first project with a big client, hiring an experienced attorney for the negotiations can be very helpful.As a project owner, a retainage fee will protect you from liens, claims and contractor defaults.The fee is only a small percentage of the full project cost (usually 10%).Still, you are assured of saving some money to offset any loss and inconvenience brought about by any incomplete work.History of Retainage FeeRetainage fees started in the UK during the construction of the UK railway system in the 1840s. The project was obviously a big one and the amount of work was more than the workers could complete.This created a demand for new contractors to join the project.Some of them were not only inexperienced, but also lacked the qualification to successfully complete their assigned portions of the work.This was a problem for the railway companies and they had to come up with a way of mitigating the risks and losses resulting from this.It became common f or them to withhold up to 20% of the total cost of the work. This was however designed to target the contractors’ profits only.The purpose of this was two-fold, and is still the same today. It is to provide the client with some protection from liens and defaults while giving the contractor an incentive to finish the work accordingly.There may be cases of contracts not implementing a retainage fee.This is not common and may not be good practice for big projects. All the same, it happens depending on the relationship between the client and contractor.The biggest reason a client can decide to ignore this provision is a record of successful work from a contractor.This will work on a project by project basis and cannot be expected to be the norm with a particular client.If you have consistently provided great services to a client for some time, he may decide to forego the retainage fee.This is definitely to your delight as a constructor and can improve your cash flow but comes with ext ra pressure.RETAINAGE FEE ACCOUNTSThe retainage fee is part of your business.As such, it has to be reported in your books. As a transaction by two parties, the amount involved is reported differently by the client and contractor.Retainage Fee PayablesIn accounting terms, money either leaves the company or comes into the company. When money leaves the company, it is termed “payable”. This will be the case for the party making the payment.In the case of a project you have assigned to a contractor, you are the one paying the money to him. He is the service provider while you are the recipient of the service. As such, your obligations are different.The full cost of the project will be recorded in your books using a suitable account description. This will be reflective of the kind of work being done. It may be “Boardroom Repairs,” “Ohio Branch Construction” or anything else.However, the retainage fee slightly differs from this overall cost. Since this is not paid until the en d of the project, you will record it as a liability. This is a payment you are expected to make at a later date.Retainage Fee ReceivablesAs the contractor, you also have to record the details of the retainage fee in your books.Because you are to receive payment, this will be recorded as a “receivable”.Although the payment is a liability to the client, to you it is an asset. You will be like a creditor to the client who now owes you money.When preparing your financial reports, e.g. your balance sheet, you will record this as a current asset.When you finally get paid, this can be used for operational purposes as it becomes part of your cash flow.You can also invest it depending on your business preferences.STEPS FOR COLLECTING RETAINAGE FEEThe retainage fee is an amount which should be collected.And for your benefit, you should collect it as soon as possible.The earlier you receive the full amount payable to you after the completion of the project, the better.As with other financi al obligations, your client is also aware of the need to pay the retainage fee.All the same, that will only happen after you have done all that needs to be done according to the contract you signed.Here are the steps you should take to collect your retainage fee soonest and with minimum challenges.Complete the Punch ListOne of the biggest obstacles to receiving the withheld payment is the punch list.Though closely associated to a checklist, the two are very different from each other.A checklist is a list of the things which should be done as part of the general project work. This is essentially a breakdown of the major tasks you are to work on.A punch list is different in that it is generated almost at the end of the project.Normally, you will have checked all the items on the project’s checklist.The client will then do a visual inspection of the project and list down what needs to be worked on in order to give approval for the payment.Depending on the construction work you were d oing, the punch list could include things like fixing leaking taps, unfinished paint jobs, faulty wiring detected in some rooms etc.All in all, the punch list is the project owner’s list of the small details you need to check on. This is the work which will make the client approve of the project’s completion. Provide Close-out DocumentsAfter successfully dealing with the punch list, there is one more thing to do. You have to provide the close-out documents.The close-out documents are those detailing the usage of the property and anything that is a core part of it.This will include copies of the legal documents indicating the agreements between you and the client.You will also need to provide warranty documents showing the relevant guarantees you are providing to the client.If the construction has used materials from your subcontractors, those materials should have a warranty.In many cases, these will include HVAC systems and other electrical systems.Whether the client knows your subcontractors or not, the retainage fee is based on his agreement with you.It is therefore upon you to ensure that all these are provided.If you sourced for material from other sources, you can give the client a copy of the documents while maintaining the original.These documents give the client an assurance of a good job done and availability of support.Submit the Retainage InvoiceAfter all these, the last thing to do is provide the client with an invoice for the retainage fee payment.The invoice is the legal document indicating your claim of the payment initially withheld.Without an official submission of the invoice, you will not be deemed to have requested for the payment.At the same time, you will be mistaken to think that the client will go ahead and make the payment without you requesting for it.Although he is obligated to pay, he will most likely wait for your invoice.For accounting purposes, no payment can be done without the supporting documents.You therefore have to pro vide this in a timely manner to prevent further delays.CHALLENGES WITH RETAINAGE FEEThe retainage fee, as good as it is for project owners, it is a serious challenge for contractors.Where subcontractors are involved, they tend to be the most affected.This is because the general contractor will often withhold some amount from them, just as the client has done.Withholding money from subcontractors has been proven to cause practical issues, especially with regards to cash flow.Since the subcontractor is meant to perform well yet needs the money to work, business relations can become strained.In 2004, the American Subcontractors Association published a report on the practices of retainage fee.It showed that a majority of the main contractors abuse the retainage principle. Here are some of the findings.After a successful completion of the project, subcontractors waited between 30 to 900 days before getting the retainage paid. The average wait time was reported to be 167 days (almost 6 mo nths).The worst wait times were reported to be an average of 529 days (almost 1.5 years) with the longest time being 2,500 days (almost 7 years)In more than 10% of their jobs, subcontractors have received less than the full amount withheld from them.There was reported a widely-held belief that retainage was not being used to ensure work completion. Instead, it was being used by the main contractor and project owner as leverage to push the smaller players into weaker positions.SPEEDING UP COLLECTION OF RETAINAGE FEEThe process of getting paid the retainage fee may take a short or long time.This is dependent on many factors and some of them may be beyond your control.For example, the client may not have the money to pay at the time you make the request.This can be due to cash flow problems. The client may also have planned for other expenses which according to him, are more urgent.This can be very unfortunate but it happens all the same. Money is never in constant supply and budgeting has to be done. This calls for prioritizing payments as a means of handling financial obligations.This is why debtors are usually given notification for payment so they can plan accordingly. Many business payments are done within 30 days after the request is made.This can change depending on the specific agreement between the parties.For a smoother flow, use these tips to speed things up.Stay Aware of the Retainage ReceivablesIf you have several projects you are working on, you can easily forget about the retainage fee. You can work to meet the needs of the other clients and lose memory of the pending payment.When this happens, it will definitely be long before you get paid. Remember that it in many cases, your client may not be in a hurry to pay you as he prioritizes other payments.Keeping in mind that there is some money owed to you is the first step towards working on receiving the money.This will remind you of whatever needs to be finished.There are two lists which will guide y ou in completing the work.1. The project’s checklist â€" the main items on the project’s checklist have to be completed. If you had envisioned finishing the whole project in two years, then try to complete the checklist in a year and a half. This gives you time to work on the punch list.For example, you may be constructing a new office block. The checklist for this may include a 10-story main building, a food court, parking lot and installing security systems. Once these are done, the client carries out an inspection.2. The project’s punch list â€" the client’s inspection will provide a report indicating whether everything is according to his requirements. This process may take some days depending on the size of the project.Anything outlined by the client as needing your attention has to be worked on. From fixing plumbing problems to making slight adjustments, anything can be required. It is only thereafter that you can proceed with your retainage request.Focus on Closing Ou t ProjectsClosing out projects may sound easy but often involves many activities. As such, the process can easily get derailed if you don’t focus on it.In working on closing out the current project, document everything that has been done in the course of the project. Ensure you have the relevant documents for whatever installations have been done.There will be a need for you to provide user manuals to facilitate quick troubleshooting in case of any problems. Some of the installations requiring user manuals are elevators and security systems.There may also be need to train the people who will be operating these systems.Technical training will be necessary to avoid unnecessary calls to your support center.This also empowers the client and gives them control over their property.You can easily get overwhelmed by all the work involved in closing out projects. To avoid this, have a dedicated team to handle it.You can have project managers who follow up with the workers and stay updated to any changes which occur to the project.This is also the person who will follow up with the client on the payment in case you don’t have a dedicated debt collector.Here is a video on some tips on what to do after closing out the project. Stay in Contact with the ClientHaving done all that you were expected to do and probably even exceeded your client’s expectations, do not cut off communication.Do not leave the task of getting paid to the project manager or debt collector.You can stay in contact with the client and find out his experience of the new facility.In the communication, remind him of the pending payment and work on sustaining good business relations.If you are the owner of a construction company, calling the project owner can go a long way in pushing for the retainage fee to be released.Just make sure that all the documentation has been done and there is nothing pending from your side.RETAINAGE FEE ALTERNATIVESRetainage has been in existence for a long time.Over the years, there have been complaints and calls to abolish it.There have been attempts at implementing different strategies of ensuring the involved parties still achieve the same goals. Source: Kegler Brown Hill + RitterThe reasons for calls for change have mainly been revolving around cash flow challenges.Three of the suggested alternatives are mentioned below.Propose to your client the one you think might work best for you. Maybe you will form part of the change.Trust AccountsA trust account can be implemented in various ways. Whichever way is agreed upon, these remain to be one of the contractors’ most relished options available.When a contract agreement includes the clause that the retainage fee will be held in a trust account, the contractor is most happy.In this arrangement, the retainage is deposited in a trust account and a trustee assigned to maintain it. The trustee must be impartial in his dealings with both you and the client.That said, the trustee has the opportunity to invest the money deposited to the contractor’s benefit.This gives you the peace of knowing that your money is sure to come, but it’s also growing.The client on the other hand has n othing to lose.In the even that there are any disputes, you will follow the stipulated process as outlined in the trust account’s terms and conditions.Performance BondsA performance bond is a promise given to a client to insure him against the risks of a contractor failing to successfully complete a project.The bond provides compensation which is similar in amount to the retainage fee.Performance bonds are usually given as a guarantee that a contractor will finish the job. In the event that he doesn’t, then the issuing institution compensates for the loss which has been experienced as a result.Collateral DepositsAnother option which can be attractive to project owners is the deposit of collateral.If you deposit collateral with the bank or directly with the client, you put that asset on the line for possession in case you fail to hold to the terms of the contract.Collateral can be anything of value ranging from land, a house or a car.This gives you the opportunity to receive the full payment of the project so you can comfortably work.Upon completion of the project, you get your deposited security back.CONCLUSIONRetainage fee has been used in the construction industry for a long time.The concept seeks to ensure the contractor finishes the job according to plan.Normally at 10% of the total project cost, it can hinder smooth flow of work especially for the subcontractors down the line.As more options are considered, there might be an end to this practice.The underlying intentions will however remain: the contractor must prove that he will deliver the work he promises to do.