Retainage Holdback Calculator

Retainage is cash withheld from GC on each draw (5-10%) to ensure project completion. This calculator tracks cumulative retainage and release math.

Total contract amount

Retainage %

Work completed %

Partial releases to date

Current retainage held

$650,000

Amount earned (before retainage)

$7,500,000

Gross retainage accrued

$750,000

How the math works

Retainage held = earned × retainage % − partial releases. Builds up over the project and releases at final completion.

Clear retainage tracking prevents disputes at project end. Use a written retainage schedule with trigger milestones and required documentation.

How to Use

Enter total contract amount.
Enter retainage %.
Enter work completed %.
Enter partial releases to date.
Read retainage held.

Frequently Asked Questions

Typical retainage?

5-10% of each pay app is withheld. Often reduces to 5% after 50% completion, and releases at substantial completion minus punch list (held 100% until final).

Why hold retainage?

Ensures GC and subs stay motivated to finish punch list. Without retainage, GC vanishes once big invoices paid. Holdback keeps pressure on through final 5-10%.

State laws?

Some states cap retainage (5% max), others require interest-bearing holdback, others require early release after 50% complete. Check state construction laws.

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.