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# On a construction transaction, why is a disbursement created for Construction Holdback?

This reduces the duplicate data entry that would otherwise be required for the Disbursement Authorization, which is applicable to all construction transactions, and the Calculating Cash to Close table applicable to non-seller transactions. The Amount displayed is determined by subtracting the Initial Advance Amount on the Calculation page from the sum ofConstruction Costs for each collateral, if more than one piece of collateral exists.

'Construction Holdback' defaults to Account Number/Payee Name. Any changes made to the Initial Advance Amountand/or Construction Costs will be reflected in the Amount. In non-seller transactions, Payoff and Payments is selected and is read-only so it is included in Total Payoffs and Payments (K) in the Calculating Cash to Close table.