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Pay App Retainage Calculator

Retainage is held back from each pay app until completion. This calculator sizes holdback and released amounts.

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%
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Current draw

$153,000

Retainage held

$97,000

Gross amount due

$970,000

How the math works

Current draw = (work + stored) − retainage − prior paid.

Track retainage balance monthly. At 50% of project, retainage should exceed punch-list cost estimate. If it's close, ramp up quality oversight — retainage is your completion leverage.

How to Use

  1. Enter work completed to date.
  2. Enter retainage %.
  3. Enter stored materials.
  4. Enter prior payments.
  5. Read current draw.

Frequently Asked Questions

Typical retainage?

10% first half, 5% second half (sliding retainage). Or flat 10% throughout. Varies by contract and state — some states cap max retainage at 5% or 10%.

Stored materials?

Usually 90% paid; 10% retained like work. Must be on-site or insured off-site storage. Bond required for off-site storage above certain threshold.

Release?

Typically at substantial completion. Full release at final punch list + certificate of occupancy. Some subs release earlier (mechanically complete). Read contract.

Who owns this risk — sponsor or lender?

Construction risks are typically shared: hard-cost overrun owned by sponsor (via completion guaranty), soft-cost and delay risks shared per contract, force-majeure excused but bears owner carry cost. Document risk ownership in the loan agreement and GC contract before closing. Disputes get expensive when roles are unclear. Institutional deals spell out every allocation in writing.

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