Why separate a forecast date from a contractual trigger?
The programme forecasts events. The contract defines the event, certification or other conditions used for a payment decision. A bid review needs both, with their different purposes labelled. Do not enter a forecast date in a certificate field or describe an assumed release as confirmed cash flow.
NEC's publisher FAQ on retaining and paying retention discusses completion and a defects certificate as different release stages in a specific NEC3 ECC example. That example supports checking the actual contract terminology. It does not establish the rule for another form, an amended contract or a different jurisdiction.
Prebid Review is independent and is not affiliated with NEC. This original review worksheet is not legal advice. A qualified contracts professional and legal adviser must assess the actual form, amendments and applicable law.
Sources: NEC Contracts: Retaining and paying retention: NEC3 example
Which questions belong in the release register?
Read the issued contract, schedules and amendments together. Record the actual wording reference and any unanswered question without reproducing the contract text. Identify which party supplies or issues the relevant evidence.
| Review item | Record | Question for the authorised reviewer |
|---|---|---|
| Release stage | Contract-defined stage and document reference | What event actually triggers this stage? |
| Required evidence | Certificate, acceptance or other specified record | Who issues or supplies it? |
| Amount basis | Actual contract calculation reference | What is released and what remains retained? |
| Further conditions | Amendments and required supporting steps | Is the trigger sufficient on its own? |
| Assessment route | Submission, assessment and payment references | Which process follows the evidence? |
| Forecast | Programme assumption shown separately | Which cash-flow assumption is still unconfirmed? |
| Open question | Issue, owner and clarification reference | What needs resolution before the bid is approved? |
How can a programme assumption overstate release readiness?
Illustrative example. A fictional bid cash-flow sheet assumes a later retention release on the forecast end date of a defects period. The issued contract instead refers to a certificate event for that stage. The review records the forecast date as an assumption and the certificate requirement as unresolved evidence. No release date is represented as confirmed.
Ask the authorised contracts reviewer to establish the actual trigger, evidence owner and assessment process. Do not infer that an internal close-out checklist, a supplier warranty or the absence of reported defects replaces the specified certificate.
Keep any clarification tied to the exact issued contract version. A response about one package or contract edition should not be applied automatically to other packages. Update the bid assumption only after the authorised disposition is recorded.
What should be handed to the commercial approver?
Provide the trigger register, the separate forecast assumptions and the unresolved questions affecting cash flow. Distinguish retention from other security instruments and from final account settlement. Similar close-out dates do not make these the same obligation.
Avoid generic percentages or universal release deadlines. Use only the actual contract evidence and authorised interpretation. If the evidence is unavailable, retain an explicit unresolved assumption rather than inserting a commonly used practice.
Preserve the original assumption and later decision so the basis of the approved bid is auditable. This review organises the information needed for a decision; it does not make a legal entitlement determination or submit a payment claim.
Common questions
What else should the bid team know?
Does the forecast defects-period end confirm a release date?
No. Check the actual contractual trigger and required evidence.
Are retention and performance security interchangeable?
No. Review each obligation and release process separately.
Can this register determine legal entitlement?
No. The actual contract and law require qualified contracts and legal advice.
Primary sources
- Retaining and paying retention: NEC3 exampleNEC Contracts