Glossary
What is Retainage in Construction?
Retainage is a portion of a contractor payment (typically 5-10%) withheld by the owner or general contractor until the project reaches substantial completion or final acceptance. It serves as security against defects, incomplete work, or contractor non-performance.
Definition
Retainage (sometimes called retention) is a percentage of a contractor earned payment that the owner or general contractor withholds from each progress invoice — typically 5% or 10% — as security until the project is substantially complete or accepted. It is released at the end of the project or per milestones specified in the contract.
Frequently Asked Questions
Related Glossary Terms
Run Your Construction Business With BuilderMate
Construction CRM, builder software, and commission tracking in one platform. $99/mo, all features included.