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Tracking retainage until it is released
Retainage is earned money held back from each payment. It is easy to lose track of once a job winds down.
What it is
Retainage is a portion of each progress payment the GC or owner holds until a defined point, often substantial or final completion. On the AIA application it is reported on line 5, and the continuation sheet has a column for it when retainage varies by line. The rate, release conditions and any time limits come from your contract and, in many places, state law. Main does not state legal deadlines; check your contract.
In a survey by Levelset and QuickBooks Time of 503 US construction professionals (August 2019), 66% of respondents said they wait over 30 days to collect their retainage.
How Main checks it
Main totals retainage held and released per project from your pay applications, A/R and retainage ledger, shows how long it has been held, and flags retainage still held long after the last billing. You can keep a closeout checklist per project.
A worked example Sample
SAMPLE: a synthetic project with made-up figures, to show the arithmetic. Not a real company.
Project “North Hills School (SAMPLE)”: final pay app 14 billed on February 28.
| Item | Amount |
|---|---|
| Retainage held (pay apps 1–14) | $73,450.00 |
| Released (ledger) | $0.00 |
| Still held | $73,450.00 |
| Days since last billing (as of Jun 30) | 122 |
$73,450.00 still held four months after the last billing, with no release request on record.
What to do
- Read the release conditions in your contract.
- Gather what they require (closeout documents, lien waivers, warranties).
- Send a written release request and follow up on a set date.
Sources
- AIA Contract Documents, “Completing payment applications” (G702 line by line)
- AIA Contract Documents, “Instructions: G703–1992, Continuation Sheet”
- Levelset and QuickBooks Time, “2019 National Construction Payments Report” (survey of 503 US construction professionals, August 2019)
Check your own numbers. Upload a change-order log and pay-app lines for one project to the free check: an automated preview, not reviewed by a person.