What retainage means
Retainage is a portion of each progress payment the owner or general contractor holds back until the job is complete, as security that the work gets finished.
Also called retention, holdback.
Where it shows up in your business
Retainage can be a big share of a small sub's profit, and getting it released often waits on punch lists and paperwork. Track it per job and ask for it the day you qualify.
Work it out
- Free template: Schedule of values template
- Money guide: Payment terms and net 30
- Money: Money guides for contractors