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

This reduces the duplicate data entry that would otherwise be required for the Disbursement Authorization and the Summaries of Transaction section on the Closing Disclosure. This adjustment prints on line K.04 in the Summaries of Transactions section or on Closing Disclosure-Addendum, if applicable.

The Amount displayed is determined by subtracting the Initial Advance Amount on the Calculations page from the sum of Construction Costs for each collateral if more than one piece of collateral exists. 'Construction Holdback' defaults to Description. Any changes made to the Initial Advance Amount and/or Construction Costs will be reflected in the Amount.