Retainage Release Calculator

What retainage release means

Retainage is the portion of each progress payment held back until a milestone, often substantial completion or final acceptance. When that milestone is reached, the held amount is released, usually through a final application for payment.

What retainage you will have at the end

On a $250,000 contract with a 10% retainage rate and the full contract completed, retainage held is $25,000. That is real money you earned and have not been paid, so release timing matters to cash flow.

Getting retainage released faster

• Know exactly which milestone triggers release in your contract.
• Close out punch list items quickly.
• Submit closeout documents, warranties, lien waivers and as-builts as required.
• Send the final application promptly and follow up on the owner’s review.

Laws and rules differ

Retainage rules, including rate limits and the time owners have to release it, vary by state and contract type. Check your contract and your state’s requirements, and consult an attorney for a dispute.