Construction Retainage Calculator

Progress billing schedule with withheld retainage, paid amounts, release, and balance to finish.

Setup

Summary

Total retained
$0.00
Release at completion
$0.00
Balance to finish
$0.00
Percent complete
0.00%
Total completed $0.00

Progress Draws

Period Work completed this period Remove

Running Schedule

Period Completed Rate Withheld Paid Cum. retained % complete

Self-Tests

Not run

About the Construction Retainage Calculator

Managing cash flow in commercial construction requires precise tracking of funds withheld by project owners to guarantee workmanship. A construction retainage calculator models the financial impact of standard withholdings against progress billing. By mapping the held percentage against the total contract value and scheduled draws, contractors can forecast exact release dates and final balance payouts.

How it works

  1. Input the total contract value and the agreed-upon retainage percentage.
  2. Enter the value of current or projected progress billing draws.
  3. Specify if retainage is stepped down (e.g., reduced after 50% project completion).
  4. Calculate the total funds currently withheld and the remaining balance required to finish the contract.

Frequently asked questions

What is the standard retainage percentage in construction?

The industry standard for retainage is typically 5% to 10% of each progress payment, held until the project reaches substantial completion.

What does it mean to reduce retainage at 50% completion?

Many contracts stipulate that once the project is successfully halfway finished, the owner will stop withholding further retainage or reduce the rate to ease the contractor's cash flow burden.

Are private owners legally required to release retainage promptly?

Many states have enacted 'Prompt Pay Acts' that dictate specific timelines for releasing retainage on private and public works once a project achieves substantial completion or a certificate of occupancy is issued.

Can subcontractors track their own retainage?

Yes, general contractors withhold retainage from their subcontractors under the same mechanism. Subcontractors use these calculations to track funds owed to them upon completion of their specific trade scope.

References